Stakeholders laud CBN’s proposed policy for loan defaulters to forfeit deposits in other banks

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Some Nigerians have lauded the Central Bank of Nigeria’s (CBN) proposed policy that will make loan defaulters to forfeit their deposits in others banks.

The stakeholders, who spoke on Thursday, said the policy would strengthen customers’ trust in the banks.

CBN Deputy Governor, Mrs Aisha Ahmad on Monday at the 345th Bankers’ Committee Meeting in Lagos, said that the apex bank was proposing to implement the policy that would make loan defaulters to forfeit their deposits in others banks.

Mr Lamidi Adekunle, a federal civil servant, told NAN that the policy would address unruly behaviour of some workers who take loans from banks and never pay back.

Adekunle explained that he had heard of several cases where some civil servants moved their salary accounts to other banks because of loans they took and failed to pay back in the former banks.

According to him, the policy will prevent and address such attitudes of such bank customers.

Mr Sani Bello, another civil servant said it was only dubious people that would not support such policy of the CBN.

Bello, also a farmer told NAN that he had four different bank accounts but never took loan from any of them.

Mr William Timothy, a financial expert described the proposed policy as a welcome development to financial system.

Timothy added that the planned policy would stabilise deposit money banks in the country as well as reduce cases of liquidation of banks.

The expert said loan defaulters were the major cause for the collapse of some banks in the country.

Malam Mutallab Sezuo, a retired banker, however, faulted the proposed policy of the apex bank.

Sezuo explained that a lot of people would be discouraged from depositing their money in the banks because of this stringent condition of forfeiting money in other accounts.

He said that the policy could also lead to several litigations between customers and banks.

Meanwhile, a bank manager with one of the deposit money banks who spoke under condition of anonymity said he had just received a memo to that effect.


“I just received a memo now from my head office in respect of this policy that henceforth, it should be stated clearly in the loan offer of agreement given to customers.

“That should a customer fail to pay back, the money will be taken from his other bank accounts,’’ he said.


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