CBN, banks to impose sanction on delinquent debtors

The Central Bank of Nigeria and the Deposit Money Banks under the aegis of the Bankers Committee will commence the imposition of market sanctions on delinquent debtors of banks any time soon.

The Acting Director, Banking Supervision, CBN, Mr. Kolawole Balogun, stated this in Lagos at a press briefing shortly after the 323rd meeting of the Bankers Committee, which was held at the CBN office in Lagos.

He did not specify the nature of the market sanctions, but CBN had said that delinquent debtors would be banned from participating in the foreign exchange market.

Balogun, who expressed satisfaction over the publication of the debtors’ lists, said banks would release lists of more delinquent debtors in coming weeks.

He said, “We have seen good responses from the name and shame strategy of recovering delinquent facilities. This is not the end; there will be follow-up actions in terms of market sanctions. It is the decision of the Bankers Committee. However, those who regularise their accounts with the banks will not partake in this.”

Meanwhile, the Bankers’ Committee said the CBN and banks would go after street hawkers of the naira with a view to bringing them to justice.

As a result, the committee has enlisted the help of security agencies to arrest those caught buying or selling naira on streets across the country.

It described street hawking of the national currency as embarrassment to the nation and insisted that those caught in the illegal business would face the full wrath of the law.

The Managing Director, Enterprise Bank Limited, Mrs. Mary Akpobome, who stated these, said, “Our currency is being hawked on the streets in different places across the country. This is not possible in places like the United Kingdom and the United States. We have informed the securities agencies about this and buyers and sellers caught in this act will face the wrath of the law.”

The Managing Director, Guaranty Trust Bank Plc, Mr. Segun Agbaje, said domiciliary accounts were still operational as before except that banks no longer accept cash deposit of dollars and other foreign currencies.

He, however, said the CBN was ready to meet demand for invisible trade items through its windows.

The Managing Director, Wema Bank Plc, Mr. Segun Oloketuyi, said the Bankers Committee had suspended charges on customers who make transaction above the prescribed limits in the Cashless Nigeria Policy.