The Humanity Development and Empowerment Organisation (HDEO), widely recognized as the Lenders Association, has called on the federal government to address a long-standing issue of ₦12 billion in loan deductions from civil servants’ salaries that remain uncredited to financial institutions.
The coalition, comprising commercial banks, microfinance banks, and finance companies, says the delay has caused severe disruptions to their operations.
The demand came during the association’s leadership handover ceremony held in Abuja over the weekend.
Outgoing National President Dr. Osita Nebolisa urged the newly elected executives, led by National President Mr. Dele Apanisile, to prioritize the recovery of the unremitted funds.
Speaking at the event, Dr. Nebolisa reflected on his tenure from November 2022 to November 2024, highlighting achievements such as disbursing ₦6.2 billion in loans to over 2,400 federal civil servants and signing a landmark Service Level Agreement (SLA) with the Office of the Accountant-General of the Federation in 2023.
However, he underscored the pressing need for the association to recover the ₦12 billion trapped in the government’s Integrated Personnel and Payroll Information System (IPPIS).
“One of our most pressing challenges remains the recovery of over ₦12 billion in deducted but unremitted funds,” Nebolisa stated.
“I urge all members to provide unwavering support to the EXCO in addressing this critical issue.”
Nebolisa further emphasized the importance of unity within the association, stating that the experienced incoming team is well-equipped to tackle the challenges ahead.
The unremitted deductions have placed a strain on the operations of lenders, many of whom depend on consistent cash flow to meet their obligations.
By withholding the funds, the government has inadvertently undermined trust in the IPPIS system, a platform designed to ensure transparency and efficiency in salary management.
The new leadership has pledged to take immediate action. National President Apanisile assured members that the association would work closely with the Office of the Accountant-General of the Federation to resolve the issue.
“Our focus will be on protecting the interests of all stakeholders, ensuring financial accountability, and promoting equitable lending practices for Nigeria’s workforce,” Apanisile said.
This controversy sheds light on systemic inefficiencies within Nigeria’s financial and payroll management systems.
The incident underscores the need for improved oversight and collaboration between government agencies and private institutions.
As lenders face financial strain and civil servants risk losing access to credit, stakeholders are calling for swift government intervention.
Many believe this issue, if left unresolved, could set a dangerous precedent for future deductions and remittances.
The new leadership of the Lenders Association now bears the responsibility of not only recovering the funds but also restoring trust in the system—a task that will test their resolve and strategic acumen in the months to come.