The Central Bank of Nigeria, CBN, on Friday, August 7, said that all bank debtors whose names were published in national newspapers would not go unpunished.
According to the apex bank, the intended sanction will serve as deterrent to others who may want borrow money from financial institutions and not pay back.
Speaking yesterday in Lagos after the 323rd Bankers Committee meeting, Acting Director, Banking Supervision, CBN, kolawole Balogun, said that the apex bank would impose market sanctions on the debtors.
According to him the CBN would give the debtors some time re-negotiate and agree on the issues, after which sanction would meted to delinquent debtors.
“There must be sanctions for debtors who were not able to reach agreement with their banks. For instance we could impose market sanctions o such persons and directors of debtor companies. The CBN is actually watching and certainly sanctions must be applied when and where necessary.
“The publishing of debtors’ names was not initiated by the CBN. It was actually at the instance of the Bankers Committee, but the CBN is in support of and will take it up from there.
“Non-performing loans, NPLs are toxic to the banking industry and the economy and would not be allowed to continue to increase. If it is allowed to rise it could bring down the financial system and the economy at large”, he said.
