Last updated on November 17th, 2021 at 12:10 am
The interest-free loan of the Federal Government TraderMoni is a wonderful initiative, but beneficiaries who received the first loan of N10, 000 in 2018 are facing challenges in paying back the loan.
From the way TraderMoni is structured, a trader must have repaid the initial N10,000 loan to be eligible for the next round. In other words, once a trader defaults in the first instance, she is out of the scheme, and her credit history would be considered poor.
Reading this for the first time? TraderMoni is one of three microcredit products of the Government Enterprise and Empowerment Programme (GEEP).
Once you received N10, 000 you are given a 6-month time frame for repayment, once that it’s done, you dial a code to get N15, 000 and on and on till you reach N100, 000.
According to the management of the programme, repayment can be made at designated banks across Nigeria>>List of banks in charge of repayment.
TraderMoni Loan repayment Challenges
Some of the challenges facing TraderMoni loan repayment include:
- Ignorance of partner banks
- Fraudulent agent
- Ineffectiveness of TraderMoni social media managers
Ignorance of partner banks
Most of the banks are not even aware of receiving repayment on behalf of Bank of Industry which is in charge of the disbursing the loan.
For instance, all the beneficiaries of the TraderMoni in Ipetu-Ijesa, Oriade Local Government of Osun State are unable to repay back the N10, 000 they received in 2018.
Even though First Bank is one of the partner banks, the officials of the bank said they are yet to receive update from their headquarters.
This is a challenge that has technically cut the beneficiaries off from enjoying higher loans.
In Osogbo, the state capital of Osun State story is the same. Partner banks are ignorant of repayment.
Recalled that in an interview published by businessday in March 2019, the Chief Operating Officer of GEEP, Uzoma Nwagba, said :
“In the past 2 years, we have given over 1.5 million loans across the three programs, 1.2 million of which are TraderMoni beneficiaries. The loans are driven strictly by scale of demand.”
That’s to tell you how huge the programme is, but the inability of the beneficiaries to make repayment for them to enjoy higher one may hinder the success of TraderMoni and its effectiveness.
In late 2018, there were reported cases of fake mobile money agents who went to capture data of market women by collecting N200 fee or more.
In Osogbo, for instance, an agent was charging N500 per head to register petty traders while he was also caught charging N1, 000 for assisting some of the petty traders to transfer their monies to the bank account of their choice. He was reported before he stopped.
“We have even seen instances of people who do not work for the programme, walking into a market with mobile phone tablets and posing as TraderMoni agents.
“They charge N200 per person who comes to have their data and picture “captured,” whereas this is all just a show.
”This is one of those issues where our first reaction has to be to over-communicate, to make it clear to the public and our beneficiaries that TraderMoni is FREE!” the coordinator of the programme had said.
At the end they receive below N9,000, making some of them to think it’s necessary to repay.
But do they follow up? NO!
Ineffectiveness of TraderMoni social media managers
Another problem facing Tradermoni loan repayment could also be the ineffectiveness of TraderMoni social media managers. They only after sharing photos of those who have benefited from the loan, hundreds of complaints are unattended to on TraderMoni Twitter page.
Recalled that when the programme was launched in 2018, everyone thought it was a ploy to canvass for votes.
Our help lines are always active to attend to your needs or complaints regarding payments, agents or general enquiries.— The Growth Platform (@growthplat_me) May 21, 2019
Give us a call today!
Quick reminder: 15,000 naira loan is in progress, repay your initial loan and apply for it.
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In fact, Financial Technology Africa in one of its articles say “the petty traders and artisans would not repay TraderMoni loan because they would think that it is their own slice of the proverbial ‘national cake.”
It suggested that officials of the Bank of Industry should have been in charge of distribution and not the vice president Yemi Osinbajo.
The fact that Yemi Osinbajo was seen in the market where the loans are distributed would make some people, is the one sharing TraderMoni on behalf of the Federal Government, the petty traders and artisans across the country would see it business and make plans to repay the loan.
All the partner banks should be informed and directed to start accepting the loan repayment from the beneficiaries.
Two, there should be a special task force in each state who will work with market women to be able to track and arrest those who have been exploiting the unsuspecting petty traders.
Lastly, the social media managers of TraderMoni should responsive
- Leadership News
1 thought on “3 Challenges Facing TraderMoni Loan Repayment”
Oinu Samuel oche is my name I hail from Apa LGA ugbokpo Benue state I applied for tradermoni and was approved but up till now I have never receive alart why others has received their own since last week. What can I do in this process please. I need help please.