Nigeria: Menace of Delinquent Bank Debtors

2 August 2015

As Nigeria's banking sector commences the implementation of the directive of the Central Bank of Nigeria (CBN) to publish the names of delinquent bank debtors who are responsible for the Non Performing Loans (NPL) as from this month, we note with concern its wider implications. An April 22, 2015 CBN Circular with reference BSD/DIR/GEN/LAB/08/022 and titled 'Recovery of Delinquent Credit Facilities' had directed the banks and discount houses to adopt that line of action after three months of grace from May 1, 2015, which is August 1, 2015.

To accentuate the import of the measure, the banks are to publish not only the names of the companies but of their directors, as well as proxies. Besides such information is to appear in three national dailies and on a quarterly basis until the loans are liquidated.

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