Wednesday, 24 June 2015

MFB backs CBN over publication of debtors’ list

The Executive Director of Programmes, Self Reliance and Economic Advancement Programme, Mr. Olatunde Oladokun, says the Central Bank of Nigeria’s directive to bank to publish the names of chronic debtors in August will sanitise and strengthen the financial sector.
While stating that huge debts had the growth of the sector negatively, Oladokun called for the prosecution of the chronic debtors.
He spoke to journalists on the sidelines of the SEAP’s growth enhancement summit in Ilorin on Wednesday.
He, however, urged the CBN to take into consideration the fact that high cost of production especially in the manufacturing industries owing to lack of infrastructure could make borrowers to default in payment.
According to him, the publication of the serial debtors’ names should also be extended to the MFBs.
Oladokun said his MFB had lost about N30m to insurgency in the north east of Nigeria.
He said there was no policy by the CBN or the Federal Government to protect financial institutions against loss from insurgency, adding that such was not fair.
He therefore urged the government and the CBN to revisit the issue with a view to protecting financial institutions from losses arising from insurgency.
Oladokun, who lauded the CBN bank verification number initiative, however, urged the regulator to increase its enlightenment campaign on the initiative.
According to him, it may not be feasible for rural bankers to comply within the deadline owing to perceived low level of awareness.
He said the enlightenment was more on urban areas, adding that it should be carried in different local languages to rural areas including markets so that the rural dwellers would be enlightened.
Oladokun “We support the publishing of serial debtors but the issue is: which kind of debtors are they publishing. Are they talking of debtors with big banks or MFBs? If they have been indebted and have stayed there as defaulters, their names are worth being published. At least, morally they will be disturbed.

HENRY E. J Williams

Author & Editor

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