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Bank Shareholders Laud CBN for Blacklisting Super Debtors

By on September 29, 2012

CBN Governor, Sanusi

Some bank shareholders have commended the decision of the Central Bank of Nigeria (CBN) to blacklist debtors that are indebted to the Asset Management Corporation of Nigeria (AMCON) to the tune of billions of Naira.

 

The shareholders were of the opinion that this will instill discipline and promote the sector.

 

The CBN had exposed 113 companies and their principal shareholders and directors where the worth of the loans acquired by AMCON amounted to N5 billion or more, in a move aimed at reinforcing the financial solidity and instilling order in the banking sector, and refrained them from collecting further loans until the outstanding amount was paid.

 

Mr. Olufemi Timothy, President Renaissance Shareholders Association, said: “It is a very good development. A situation where someone owes and you give that person some concession and still he is not willing to pay, I think the best thing to do is to stop that person from getting further credit.”

 

“The decision by the central bank is commendable and we must all support the CBN. The policy should be fully implemented and should not be politicized.”

 

General Secretary, Independent Shareholders Association of Nigeria (ISAN), Mr. Adebayo Adeleke, advised that loans are meant to help people and businesses expand so, they should not be afraid of collecting loans but always be willing to pay back.

In addition, President, Finance Houses Association of Nigeria (FHAN), Mr. Samuel Durojaye, said “for those debtors who are in a position to pay, but cannot pay, the decision to bar them from the credit market is right.”

 

He maintained, “There are some debtors that want to pay, but are constrained because of the economic situation. Such people should be given the opportunity to be able to access credit to expand or revive their businesses.”

 

“There should be a distinction between those debtors who are in a position to pay, but have refused to pay and those who need support to be able to perform on their outstanding obligation. AMCON and CBN should be able to look at this case-by case and where there is need for support and repackaging of the businesses involved.”