Woe unto bad debtors, loan defaults will be charged with deposit from other banks

The Central Bank of Nigeria (CBN) has announced that loan defaulters will be charged with deposit from other banks.

This decision comes after the Apex bank discovered the shortcoming in the loan granting system. There has been lot of deliberate loan defaulters just because there is no platform to charge them from other banks.

Addressing journalists after the Bankers Committee meeting on Monday, Aishah Ahmad, CBN’s deputy governor, financial services system said the directive is to encourage banks to increase lending.

This is a good idea and it will help many entrepreneurs to access loan facility from commercial banks.