It may no more be a jolly ride for loan defaulters in Nigeria as regulatory authorities have firmed up recovery mechanisms.
Now, banks can go after monies in the accounts of the defaulter, according to guidelines on the Global Standing Instruction (GSI) issued by the Central Bank of Nigeria,.
The bank noted in a statement that accounts eligible for such seizure included individual savings accounts, current accounts, domiciliary accounts, investment /deposit accounts in both Naira, foreign currencies; as well as electronic wallets and joint accounts.
It said: “The GIS shall serve as the last resort by a creditor bank without recourse to the borrower to recover past due obligations principal and accrued interest only, excluding any penal charges from a defaulting borrower through a direct set-off from deposit/investments held in the borrower’s qualifying bank accounts with participating bank accounts.”
It added that while the Nigeria Inter-Bank Settlement System (NIBSS) and the apex bank would be expected to work together for successful implementation of the guidelines, it was expected that all banks must execute the GSI Mandate Agreement with the NIBSS and ensure that all qualifying accounts remain visible to NIBSS on the Industry Customer Accounts database.
Soyinka at 86: Watch inspiring poetic tribute and subscribe for more on Akeem Lasisi & the Songbirds on YouTube:
