The Central Bank of Nigeria (CBN) has ordered commercial and merchant banks in the country to begin debiting various loan defaulters as it seeks to build back a better financial system.
In a circular obtained by DAILY GIST titled ‘Re: Global Standing Instruction (GSI), Individuals’, CBN said the rate of recovery attempts through the GSI platform will continue unrestricted.
The GSI guidelines was issued in July 2020 pursuant to Section 2 (d) of the Central Bank of Nigeria Act, 2007.
The circular said:“Consequently, please be informed that the frequency of recovery attempts via the GSI platform has been amended from a specific number to continuous and unrestricted.”
“In other words, the GSI automated loan recovery feature applicable to all loans in the industry will henceforth remain perpetually in place throughout the life of the loan and until the loan is fully repaid.”
The financial institution regulator said it conceived the initiative to address wilful loan default in the banking industry, watch list chronic loan defaulters, boost recovery from eligible and funded accounts in the sector and improve credit repayment culture.
The policy became effective in August 2020 as part of efforts to reduce the rate of non-performing loans in the banking sector.
Experts believe the GSI implementation has led to the banks expanding their loan base since they have CBN’s backing and GSI to recover their funds.
These guidelines were issued in a bid to promote sound financial system stability in Nigeria and to enhance loan recovery across the banking sector.
The policy was introduced to improve credit repayment culture, reduce Non-Performing Loans (NPLs) in the banking industry; and identify and create a watchlist of consistent loan defaulters.
For the GSI to work, all bank accounts belonging to the borrower have to be linked to their Bank Verification Number (BVN) and National Identification Number (NIN).
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Related Topics:Bank Verification NumberBVNCBNCentral Bank of NigeriafeaturedGlobal Standing InstructionGSINational Identification NumberNIN
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E-FINANCIALBanks Call for Special Court to Deal with Financial CrimesPublished 6 hours agoon November 29, 2023By Comms Week
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Dr Ken Opara, president, Chartered Institute of Bankers of Nigeria (CIBN) has said that there was a need for the creation of a specialised court to exclusively deal with commercial and financial cases as opposed to having divisions within the existing court structure.
Banks Call for Special Court to Deal with Financial Crimes
Opara, spoke at a programme organised by the CIBN in collaboration with the National Judicial Institute (NJI),
He was concerned about the dynamic nature of the financial sector, especially with rising financial technology, saying there was a need to deliver judgment.
According to him, there is also a need for the sector to work together to boost capacity otherwise the right judgment could remain elusive.
“We need to speed up cases. That is why we are canvassing for a commercial court. We have seen a lot of improvement, especially division and department in taking care of commercial cases. But we think much more needs to be done by setting up a special court for commercial and financial cases that will be able to take care of our financial matters,” he said.
Opara said strong measures are required on cybersecurity as capital is being eroded due to gaps that exist globally.
While Olayemi Cardoso, governor of the CBN, had said banks would be required to increase their capital base to service the $1 trillion economy projected by President Bola Tinubu, Opara said banks had already taken steps ahead of the apex.
He said most banks in Nigeria would be able to meet the benchmark, adding that raising the fund would not be an issue for Nigerian banks.
At the event, which focused on ‘The Financial Service Industry and the Judiciary: Upscaling for a Sound Economic Ecosystem,’ Opara said magistrate courts are illegally issuing bankers orders despite a series of judicial precedents.
Opara added that while the responsibility of the Economic and Financial Crime Commission (EFCC) to curb crime cannot be over emphasized, officials from the commission are illegally storming banks and directing the bank to place post no debits on the account of the bank customers contrary to the legal provisions on confidentiality of banks accounts.
“Traditionally, the application for a Garnishee specifies the third-party (garnishee) in the custody of the debtor’s assets to be attached. However, the prevalent practice continues to be for the judgment creditor to proceed against all banks (as garnishees) without first verifying the indebtedness of the bank to the judgment debtor,” he said.
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E-FINANCIALSterling One Foundation partners Live Abundantly, British High Commission on gender based violencePublished 6 hours agoon November 29, 2023By Ugo Onwuaso
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Sterling One Foundation, in collaboration with Live Abundantly and the Deputy British High Commissioner to Nigeria, has officially launched the 2023 edition of the 16 Days of Activism Against Gender-Based Violence in Nigeria.
L-R: Dr. Ama Onyerinma, Founder, Live Abundantly; Prof. Akin Abayomi, Lagos State Commissioner for Health; Olapeju Ibekwe, CEO Sterling One Foundation; Jonny Baxter, British Deputy High Commissioner to Nigeria.
The 16 Days of Activism for No Violence Against Women and Children Campaign, an annual United Nations initiative held annually from November 25 to December 10 (International Human Rights Day), aims to eradicate violence against women.
The global campaign, established in 1991 by the Women’s Global Leadership Institute at Rutgers University, has expanded to include violence against both girls and boys.
It is used as an organisational strategy by individuals and organisations around the world to call for the prevention and elimination of violence against women and girls.
In support of the initiative, the United Nations Secretary-General launched in 2008 the campaign UNITE by 2030 to End Violence against Women, which runs parallel to the 16 Days of Activism.
Since its inception in 1991, over 6,000 organisations from approximately 187 countries have participated in the campaign.
The event, held at the EbonyLife Place in Lagos, featured a film screening titled “Chatroom,” produced by Mrs. Olapeju Ibekwe, Chief Executive Officer of Sterling One Foundation.
According to Mrs. Ibekwe, statistics show that one in three women and one in six boys have experienced violations. She emphasised the urgent need to eliminate gender-based violence, calling for advocacy and action from individuals, private sector players, and development organisations to address and find solutions to the pervasive issue.
She added that it is important to escalate discussions on gender-based violence into the living rooms of the citizenry.
The Deputy British High Commissioner to Nigeria, Mr. Jonny Baxter, in his goodwill message stressed the importance of legislative measures to protect human rights and urged collaboration between the government and the public.
In her goodwill message, Dr. Ama Onyerinma, Founder of Live Abundantly, observed that the provided statistics may not fully capture the reality due to underreporting, adding that there is a need for people to use their voices to amplify awareness about it. She noted that when gender-based violence is not reported there can be no social justice for victims, no better awareness, no protection and no advocacy.
Commissioner for Health, Professor Akin Abayomi affirmed Lagos State’s intolerance of gender-based violence, citing the establishment of the Lagos State Domestic and Sexual Violence Agency (DSVA) as part of its commitment to tackling the issue under its THEMES Agenda.
Goodwill messages were also shared by Dr. Adewale Oyerinde of the Nigeria Employers Consultative Association and Pearl Uzokwe of the Malala Fund in Nigeria.
Dr. Oyerinde highlighted the multi-dimensional nature of the issue and outlined efforts by the private sector to ensure the safety and protection of their workforce.
Mrs. Uzokwe commended the multi-sectoral partners gathered. She added that all citizens have a part to play and commended the sustained efforts of the Lagos State Government in prioritizing the elimination of gender-based violence.
