The Nigerian Banks are set to give a chase to loan defaulters and recover all bad loans incured by a customer or organisations/corporations as the bill to empower such adventure scales second reading at the chambers.
The motion was moved by the sponsor of the bill, Sen. Sani Musa (APC-Niger) during the plenary.
In his motion he said, “The legislation had become necessary because credit was seen as the life wire of the banking business and the current situation in Nigeria demanded an injection of a healthy bank credit and recovery system that would effectively fasten the pace of growth in the financial sector.
“It is unfortunate that every lending institution finds itself from time to time with loans of which the risk of loss is greater than anticipated. In every lending environment, there are two types of borrowers – the good and the bad.
“Before the deregulation of our banking system, the ability of our banks to recover loans has been the factor behind the collapse of many commercial banks.
“Today, the situation in Nigeria has become very serious and seemingly intractable and thereby frustrating our efforts as a nation towards private sector-driven economy.” he concluded.
What you should know.
According to data from the National Bureau of Statistics, total banking sector credit to the economy stood at about N18.8 trillion in the second quarter of 2020 up from N17.1 trillion at the end of 2019. However, non performing loans at the end of the second quarter of 2020 rose by 2.27% to N1.2 trillion.
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