N2.2 Trillion Bad Debts: Nigerian Banks Vow Common Action

Chief executives of banks have resolved to forge a united front against chronic and troublesome debtors who they claim had in the recent past been playing a divide and rule action against them.

The Committee of Bank CEOs at the end of a meeting in Lagos on Wednesday also condemned the use of security men by the debtors to harass the banks and their chief executives.

Non-performing loans among Nigerian banks stood at N2.245tn as of the end of September 2018, according to the records of the National Bureau of Statistics.

They were particularly miffed by the harassment and criminalization of the banks’ CEOs by the law enforcement agencies at the prompting of the defaulting debtors.

In their resolution, the bank executives outlined five measures including the fencing off of the bad debtors by all banks.

In their joint resolve, the banks CEOs vowed that their new policy would go “beyond publishing names of such defaulters in national media (which is inevitable), but involves all banks speaking with “one voice” and sharing information about those entities, and refusing to do further business with them until they settle their obligations”.

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