The Central Bank of Nigeria (CBN) has announced measures to place bank accounts of persons who have collected loans but have refused to honor conditions and agreements on its radar.
CBN made the announcement in a new set of operational rules for the Global Service Instructions (GSI) that it posted on its website.
The GSI is aimed at checking the spate of bad loans within the banking sector.
The effort was created to combat reoccurring instances of wilful loan default in the business, according to the guidelines signed by Chibuzo Efobi, for the Director, Financial Policy and Regulation Department of the apex bank.
The recommendations, according to Efobi, will help develop a “watch list” and identify stubborn loan defaulters, as well as improve debt recovery from all eligible and funded accounts in the business.
He went on to say that it will help strengthen the Nigerian banking system’s credit payment culture and reduce non-performing loans.
“Consequently, please be informed that the frequency of recovery attempts via the GSI platform has been amended from a specific number to a continuous and unrestricted number,’’ he said.
He stated that the GSI automated loan recovery feature, which is applicable to all loans in the industry, will be in effect indefinitely, or until the loan is entirely repaid.
He asked members of the banking public to review the instructions on the CBN website.
The GSI initiative was approved by the Bankers’ Committee at its meeting in February, 2020.
The CBN, thereafter, collaborated with relevant stakeholders to develop necessary protocols to facilitate implementation of the GSI, for eligible loans granted with effect from August 28, 2019.
