From August 1, loan defaulters would have their names published in the list of bank debtors, which would mean blacklisting the individual or organisation, the Bankers’ Committee meeting in Abuja resolved yesterday.
The Director of Banking Supervision, Central Bank of Nigeria (CBN), Mrs. Martins Tokunbo, who addressed the media alongside three chief executives of money deposit banks, disclosed that banks’ total credit to both public and private sectors, including individuals, is between N13 trillion and N14 trillion.
According to her, three per cent of banks’ total credit portfolio was non-performing (between N390 billion and N420 billion respectively). Tokunbo explained that the action was being initiated to recover the non-performing loans (NPL) because the allowed regulatory threshold is five per cent and the threshold would not be allowed to grow beyond the current three per cent level.
“Last month, we gave all bank customers who had defaulted in servicing their loans a grace of three months to do so or face being blacklisting. Today at the Bankers’ Committee meeting, we reaffirmed that decision,” she said.
“Therefore, by August 1 this year, any customer whose loan is not being serviced would have his name published and thereafter blacklisted. We have advised banks to go back and discuss with their customers to avert the public disgrace and blacklisting. We are taking this action because we would not allow NPLs to go beyond five per cent any longer.”
The Chief Executive Officer of UBA Plc, Mr. Philip Oduoza, said that as part of efforts to ensure the true identities of bank customers through biometrics registration, 12.5 million customers have so far got the Banks Verification Number (BVN). According to him, the development will place banks in good stead to verify the true identities of their customers, particularly as it relates to granting of credit.
