The Cross River State Government has defended the controversial N13,000 registration fee for a youth empowerment loan scheme, insisting that the charge is legitimate and covers statutory banking and business registration costs.
The defence followed public backlash after applicants were asked to pay the fee to access loans of up to N5 million under the Cross River State Youth Empowerment Scheme.
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In a statement dated 9 January 2026 and signed by Owan Enoh, secretary to the Cross River State Government, the government said reports describing the fee as extortion were based on “misinformation in the public space”.
“There has been some misinformation in the public space regarding the Federal Government loan to Cross Riverians to start or expand their businesses,” the statement said.
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What the N13,000 covers
According to the government, the loan is a federal initiative, domiciled at Zenith Bank, and is implemented in collaboration with the Cross River State Government through the youth empowerment scheme.
“The required statutory deposit of N13,000 is authentic for all potential beneficiaries of the loan and is used for Corporate Affairs Commission (CAC) processes, opening of account number in Zenith Bank by potential beneficiaries and the issuance of ATM to each beneficiary,” the statement said.
The government added that the loan amount “varies for different categories of businesses with a pegged maximum of N5 million”. It urged residents to “take advantage of the loans and benefit maximally.”
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Backlash and suspension
The clarification comes after a letter signed by Kalita Aruku, chairperson of the Cross River State Youth Empowerment Scheme, circulated on social media, listing requirements for applicants, including CAC documents, BVN, NIN, tax identification number, six months’ bank statement and a “registration fee of N13,000.”
The fee triggered criticism online, with many arguing that it excluded poor and unemployed youths.
“This is exactly how the rich get richer, and the poor get poorer,” wrote Emmanuel Bassey, who shared the letter on Facebook. “True empowerment should remove barriers, not create them.”
Agba Jalingo, the publisher of CrossRiverWatch, described the fee as “an aberration,” asking: “If after paying, the applicant is not able to get the loan, will the money be refunded?”
Amid the backlash, the state government had earlier ordered an immediate halt to all collections linked to the scheme. In a letter dated 8 January 2026, Enyong Amiokama, State coordinator of the People First Complaints and Solution Desk Office, said the government had received complaints of “extortion, illegal taxation and fraudulent activities.”
The letter quoted Governor Bassey Otu of Cross River as condemning “any form of exploitation of citizens” and warned that “non-compliance will attract serious consequences.”
‘No extortion’ — Aruku
Mr Aruku denied any wrongdoing. He told PREMIUM TIMES that “nobody is extorting money from anybody.
“The loan is domiciled in Zenith Bank. To get the loan, you must have a corporate account with Zenith Bank,” he said, adding that the charges are bank-related and “the money is not paid to anybody.”
The Commissioner for Information, Erasmus Ekpang, had earlier told this newspaper the scheme was suspended to allow investigation and promised that the public would be briefed on the outcome.
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