NIRSAL MFB Debunks AGSMEIS Loan Diversion Claims

NIRSAL Microfinance Bank (NMFB) has debunked allegations of diverting the sum of five million Naira (N5m) loan under the Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS) with respect to a beneficiary of the facility.

Describing the claims as ‘unfounded’, the bank also said the accusation “that an AGSMEIS loan of N5 million was diverted by the staff of NMFB, is far from the truth.”

According to a statement by the bank, the said incident is only a “rare case of swap of phone numbers with similar names in 2019, when full automation had not been deployed.”

The statement circulated by the Bank’s Head of Corporate Communications, Halima Idris Omar, stated thus; “We wish to inform the general public that the allegation that an AGSMEIS loan of N5 million was diverted by the staff of NMFB, is far from the truth. The fact of the matter is that this was a rare case of swap of phone numbers with similar names in 2019 when full automation had not been deployed.

“The phone numbers of two applicants bearing the same name (Rebecca Daniel and Rebecca Zamari Daniel) exchanged places during the disbursement process. Incidentally, both had AGSMEIS loan approvals for different sums.

“Upon disbursement, the loan of N500,000.00 was approved in favour of the rightful person using her Bank Verification Number (BVN) but with a wrong phone number. This loan has since been utilized by the said beneficiary in early 2020 and repayment commenced after the moratorium. This explains why Rebecca Zamari Daniel was receiving text messages for the repayment of an N500,000 loan.”

The statement further explained that; “Presently, the information mismatch has been sorted and the N5m loan for Rebecca Zamari Daniel booked.”

Offering further clarifications on the mix-up, the bank said given the “onerous task of administering the disbursements of loans to thousands in bulk by Nirsal Microfinance bank (NMFB), it is not out of place that we receive customer feedback, both positive, negative, and even unfounded. One of such came in the form of an un-researched report alleging the bank misappropriated N5 million relating to an AGSMEIS loan beneficiary”

Subsequently, the statement said the AGSMEIS application procedures have now been improved by leveraging on technology to bring about efficiency following a fully automated process from start to finish.

To back up its assurances of improved processes, the bank said; “On the application portal (https://agsmeisapp.com.ng), applicants are able to carry out a BVN validation exercise, conduct a Credit Bureau check and provide guarantors online, whereas online questionnaire replaces physical or telephone interview.”

Also, the bank restated its pledge of effective service delivery “in a seamless manner for a more rewarding experience” for all its customers.

The AGSMEIS loan is a Federal Government initiative through the Central Bank of Nigeria (CBN) with targeted support for Small and Medium Enterprises (SMEs) and agri-businesses across the country.