CBN reveals how it plans to deal with loan defaulters | Nigerian News. Latest Nigeria News. Your online Nigerian Newspaper. f

The Central Bank of Nigeria (CBN) under the auspices of the Bankers’ Committee has concluded plans to use the Bank Verification Number of customers to blacklist loan defaulters from accessing further loans in the nation’s banking system.
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The CBN Governor, Godwin Emefiele, revealed this at the end of a two-day annual retreat of the Bankers’ Committee in Lagos on Sunday.

Emefiele said the plan to blacklist loan defaulters came on the heels of the Bankers’ Committee’s decision to increase financial access to Nigerians especially operators in the agricultural value chain and the Micro, Small and Medium-scale Enterprises, as part of the efforts to grow the economy and create more jobs.

The CBN governor said, “We do expect them (customers who take loans) to meet their own side of the bargain because we have a credit registry; their names will go into the black book if they don’t pay. If their names go into the black book if they don’t pay, it means they have ruined their credit ratings. This is because we also agreed at this meeting (the Bankers’ Committee) that we are going to raise the standard of credit bureau and credit reporting in this country.

“We are going to raise the standard to a point where there will be credit scoring for people who take bank loans. And when you are scored low or you are scored zero, we are going to use the BVN to block you from having access to any finance in the Nigerian banking or financial services industry.”

The annual retreat had in attendance the CBN governor, deputy governors, the chief executive officers of the Deposit Money Banks in the country, the chief executive officers of development finance institutions, and some key stakeholders in the financial services industry.

Also in attendance during the first day of the retreat were some state governors, namely: Governor Akinwunmi Ambode of Lagos State and his counterparts in Kebbi and Jigawa states, Badaru Abubakar and Atiku Bagudu, as well as the Minister of Agriculture and Rural Development, Chief Audu Ogbeh.


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