Following an earlier warning to chronic bank debtors in the country to pay up their debts, the Central Bank of Nigeria (CBN) on Friday directed deposit money banks (DMBs) to publish the list of delinquent borrowers whose debts have remained non-performing in at least three national daily newspapers from the end of July this year.
The banking sector regulator explained that the move is to halt the rising trend of non-performing loans (NPLs) in the industry and also ensure that the industry NPL ratio does not exceed the prudential limit of five per cent. Presently, the industry NPL ratio stands at 3.3 per cent.
The Apex bank gave the directive in a letter dated April 22, 2015 and addressed to all banks and discount houses. The letter titled: “Recovery of Delinquent Credit Facilities,” was signed by the Director, Banking Supervision, CBN, Mrs. Tokunbo Martins....
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