Central Bank of Nigeria Begins Debiting Loan Defaulters' Accounts

• The Central Bank of Nigeria has begun to go after its loan defaulters under the bank's various intervention projects
• Specifically, the bank is going after states and individuals which borrowed money under its Anchor Borrower Programme
• Also, defaulters under its Commercial Agric Credit scheme would not be spared from being debited

The Central Bank of Nigeria has made good on its promise and has begun debiting accounts of defaulters under its development finance intervention programmes.

The director of development finance at the CBN, Yusuf Yila stated this on Wednesday, September 28 after the Monetary Policy Committee (MPC) meeting in Abuja.

States' monthly federation accounts to be debited

Yila said the apex bank has begun debiting its defaulters' accounts, specifically states and farmers who benefitted from its interventions.

Read also

Glo joins MTN and Airtel in starting banking service, as CBN gives approval

The Anchor Borrowers Programme and the Commercial Agric Credit (CAC) are part of the bank's programmes.

He hinted that the state governments' monthly federation accounts allocation accruals are being debited.

The director said every person or state that took a loan under the Anchor Borrowers Programme would pay.

Yila said:

"We have their BVN. These persons are smallholder farmers who received funds for farming from state government via the Anchor Borrowers programme but have yet to pay back."

Reports say Yila also indicated during his speech that the ABP loan repayment was very encouraging, like the CAC, which he said was excellent.

According to Yila, under the ABP, the apex bank disbursed about N1 trillion but recovered N400 billion, and under the CAC, the bank gave out about N800 billion and recovered N700 billion.

Read also

Buhari tells foreign countries to return Nigeria's stolen wealth, assets, says Abacha alone stole $5bn

No mercy for defaulters

He said:

"We have started recovering loans from state governments. We have been doing a loan workout programme with them, and we are directly debiting their monthly FAAC accruals for the loans.

"If a state government has taken N1 billion and is already in default, over six months, we debit them N150 million every month. So, we've started that programme."

"So, every single loan that has been given out through any of our intervention programmes must be paid back."

The CBN top shot said that banks have jettisoned sentiments and are committed to collecting the debts owed. However, he said the banks are not showing mercy in recovery.

"At the development finance department, we have begun to recover the loans."

"To ensure that these loans are fully recovered, the Central Bank of Nigeria has solicited the assistance of the Economic and Financial Crimes Commission (EFCC).

Read also

'Transformation' beckons for embattled Credit Suisse

"We are working with the EFCC. The CBN governor has approved the collaboration with the EFCC on loan recoveries."

CBN move to recover agricultural loans farmers are refusing to pay, threatens to deduct from Bank accounts

Recall that Legit.ng reported that the Central Bank of Nigeria (CBN) has concluded on directly deducting from the bank accounts of loan defaulters under the Anchor Borrower Programme (ABP). Celsus Agla, Senior Manager of the CBN's Development Finance Office in Port-Harcourt, made the announcement on

Thursday during a meeting with maize farmers and other stakeholders.

ThisDay reports Agla said some farmers who obtained loans through the Anchor Borrower Program have ignored repayment requests, and some describe the loan as a grant, forgetting that their bank verification number was included when they applied.

Source: Legit.ng