CBN’s Crackdown on Bank Debtors Pays Off
14 Oct 2012


CBN Governor, Sanusi Lamido Sanusi


The noose tightened on a category of bank debtors are already yielding dividend as some of them are beginning to fall heads over heel to redeem their obligation but banking industry watchers insist on full disclosure of the deal between the Central Bank of Nigeria (which takes the credit for the repayment) and the debtors, reports Festus Akanbi

From all indications, the name-and-shame tactics employed by the Central Bank of Nigeria to rattle some delinquent bank debtors appear to be paying off. This is because after the initial criticisms which greeted the failure of the CBN and the Assets Management Corporation of Nigeria (AMCON) to reconcile bank debtors’ list, some of the debtors are said to be responding to the crackdown initiated by the CBN although some members of the banking community are raising eyebrows over the nature of the settlement arrangements between the debtors and AMCON.

The debtors list released to banks last month had sparked off a raft of denials and counter claims by some of the companies and individuals whose names featured prominently on the list of those to be axed for their failure to redeem their indebtedness to banks. However, the apex bank and AMCON were said to have since reconciled their lists, paving the way for the recent moves by some of the debtors to clear their debts.

Banking industry analysts, who responded to the sudden desperation of a number of debtors to redeem their image by paying up in the past few weeks, said despite the initial dust raised by the restriction placed on this category of businessmen and firms, some of the debtors have realised there was no other way of staying in business other than to meet their obligations to the banks. They contended that credit for the renewed negotiations between some of the debtors and AMCON on how to repudiate the debts should go to the CBN for tightening the noose on bank debtors.

AMCON Recoups N800 billion
One cheering news last week was the disclosure by the AMCON that to date, the corporation has recovered or restructured over N800 billion. A report quoting AMCON MD Mustapha Chike-Obi disclosed that to further demonstrate the success of its recovery efforts, Net Oil and Cross River State Government are out of the debtors’ list, having redeemed their debt obligation to AMCON. “Net Oil and Cross River State Government are no longer direct obligor to AMCON,” Chike-Obi said. By the end of 2011, AMCON had acquired over N3 trillion non-performing loans and recapitalised all the banks in grave situation, to the point where they have enough capital to fund their vital role of providing credit to the economy.

Big Relief
According to banking sector analysts who are optimistic about the success of the current debt recovery exercise, the recent liquidation of the N141 billion debt owed AMCON by the Chairman of Zenon Petroleum and Gas Limited and Forte Oil Plc, Mr. Femi Otedola, would go a long way to guarantee stability to the banking industry because it has opened the floodgate of similar repudiation of old debts by some of those firms whose names appeared on the list.

They explained that although AMCON had bought the toxic debts from the respective banks, the repayment of the total amount of money has vindicated CBN on its name-and-shame tactic even as there were reports last week that other sundry debtors are holding talks with AMCON on how to repudiate their debts. Some of those in crucial talks with AMCON on how to exit the debtors list, according to sources, included firms in the oil marketing sector. However, AMCON is said to be keeping the list of debtors currently negotiating with it secret until the conclusion of such negotiations.

The CBN had, in a move aimed at strengthening financial stability and instilling discipline in the banking sector, blacklisted 113 companies as well as their principal shareholders and directors, where the outstanding value of the loans purchased by AMCON amounted to N5 billion or more, from taking further credit from banks until the full liquidation of the agreed indebtedness.

Eyebrows Over Negotiation
AMCON had recently confirmed it has approved the transfer of Otedola’s assets as well as an undisclosed sum of cash to the corporation as full and final settlement for his liabilities although details of the deal are still being kept under wraps.

Meanwhile, some critics of the ongoing deal over the debts, especially the deal with Zenon Petroleum debt, said AMCON owes the banking community a detailed explanation over the arrangement it entered into with Otedola. This they, argued will give both the Corporation and the Zenon boss, a clean bill of health considering the worry over the true values of assets forfeited in the deal. Similar worry was contained in the position of the House of Representatives, which insisted that the negotiation over the Zenon’s debt should be made public. The House of Representatives said in a statement that it will probe the payment of N140.9billion to AMCON by the Zenom chairman. However, industry sources said apart from Otedola, other debtors are already reacting to the CBN hammer by surrendering their assets to meet their obligations to AMCON.

According to a source, some of the debtors who could not raise the needed cash are already following the footsteps of Otedola by surrendering their assets which include property scattered all over the country. Some are even said to have expressed their readiness to trade off their luxury items including private aircraft and yachts in order to clear their names. On why AMCON is silent on the identities of the affected companies since they have shown readiness to pay, the source said the corporation was just being careful until the deals are finalised before it gives them a clean bill of health. The source disclosed that because of the heat brought to bear on them by the publication of the list and the realisation that access to new facility had been effectively blocked by the CBN memo, some of the debtors have gone as far as withdrawing some of the cases they instituted against CBN and AMCON from court.

In the opinion of a Lagos-based financial analyst, Mr. Bode Olatunde, CBN should be commended for its courage to publish the debtors’ list, which also contains names of powerful persons that were perceived to be close to the corridor of power including some state governments.

No Free Loans
“The truth is that the CBN’s list has shown that we are all equal before the law. Nobody had thought the apex bank could crack down on some of those businessmen whose names featured on the list. I believe that for once, the culture of impunity is destroyed in the business circle and this will go a long way in reminding prospective borrowers from the banks that they must certainly account for whatever facility they draw from the banks.
“I also believe that this development will impact positively on banks’ finances now that everybody knows that the days of free loans are over.

“This shows that the CBN does not have any sacred cow and all it is saying is that people should honour their obligations,” Olatunde said.
He explained that the debtors’ list was released to enable banks know those who they should not lend to because the banks will only know those they are exposed to. It is also to prevent predator borrowers who move from one bank to another using the same collateral to borrow from different banks.

He added that the CBN’s action clearly showed the regulators meant well since the money used by AMCON to buy off these debts from banks are tax payers’ funds

A leading member of the Financial Market Dealers Association of Nigeria, who would not want to be quoted, said the policy of naming and shaming will sanitise the industry: banks would no longer give out credits without securing it and debtors would also be willing to honour their obligations. And, according to him, given the fact that some of these debtors have gone to court to technically delay payments, this is a clarion call to the judiciary to speedily facilitate the cases so that tax payers’ money will not go down the drain.

Similarly, some bank shareholders have expressed support for the decision to blacklist those that are indebted to AMCON to the tune of N5 billion and above.

President Renaissance Shareholders Association, Mr. Olufemi Timothy, said: “It is a very good development. A situation where someone is owing and you give that person some concession and still he is not willing to pay, I think the best thing to do is to stop that person from getting further credit.

“The decision by the central bank is commendable and we must all support the CBN. The policy should be fully implemented and should not be politicised.”

President, Nigeria Shareholders Solidarity Association (NSSA), Chief Timothy Adesiyan, described the latest move by the central bank as a major antidote to banking failure and further step in the protection of their investments. According to him, blacklisting the debtors would make them to pay up.



http://www.nigeriamasterweb.com/paperfrmes.html

Sooooooooooooo. . . where is the 'new list'?
This Sanusi dude is slacking o.
The Kanuri "Zorro" was very brave in the beginning with that list of Gbese Gbillionaires. . .
Nowadays. . . it is only 'dem say-dem say' we dey read for papers.
SHOW US PROOF NA!
Make I see weda my boyfriends names still dey for dia. . .make I laff dem weh-weh as dem continue to sssssssshaze moi!
Mu che che che che che che

Without that list. . . I cannot say 'common go and pay ya debt before you tok to me' ahghain.

Bobo Sanusi. . .e nor good o!

good work sanusi good wok federal government.the critics and pessimist can say whatever they like, but slowly and gradually were moving forward

THIS IS SO SAD!!!
Nigeria is an unending PIT.
In a meaningful country, people like Otedola would have been made to file for bankrupcy and ALL is assests AUCTIONED out.

The following are Nigerians who have cause more harm than good and deserve to be behind bars because they have taken loans from banks without paying back which has caused distress in the banks thereby people were SACKED. Leaving more people unemployed.

Aliko Dangote
Femi Otedola
Jimoh Ibrahim
Aig Imokedide (CEO Acess Bank)
Enerst Akingbola
Cecilia Ibru
Wale Babalakin and many others.



Nigerians stop fighting yourselves the real enemies are this Elites.

Callotti: Sooooooooooooo. . . where is the 'new list'?
This Sanusi dude is slacking o.
The Kanuri "Zorro" was very brave in the beginning with that list of Gbese Gbillionaires. . .
Nowadays. . . it is only 'dem say-dem say' we dey read for papers.
SHOW US PROOF NA!
Make I see weda my boyfriends names still dey for dia. . .make I laff dem weh-weh as dem continue to sssssssshaze moi!
Mu che che che che che che

Without that list. . . I cannot say 'common go and pay ya debt before you tok to me' ahghain.

Bobo Sanusi. . .e nor good o!

damn, never go extra miles to satisfy a lady. smh lol

I wonder how much of this loans were due to d government not fulfilling its obligations to oil marketers.

Bla bla blah.... Government looters, private looter, other looters... And more looters!

acidtalk: THIS IS SO SAD!!!
Nigeria is an unending PIT.
In a meaningful country, people like Otedola would have been made to file for bankrupcy and ALL is assests AUCTIONED out.

The following are Nigerians who have cause more harm than good and deserve to be behind bars because they have taken loans from banks without paying back which has caused distress in the banks thereby people were SACKED. Leaving more people unemployed.

Aliko Dangote
Femi Otedola
Jimoh Ibrahim
Aig Imokedide (CEO Acess Bank)
Enerst Akingbola
Cecilia Ibru
Wale Babalakin and many others.



Nigerians stop fighting yourselves the real enemies are this Elites.

Are you sure you are normal ? Is the bank loans they take your father's money ? Did they stop you from taking your own loan ?

Billyonaire: Has anyone stopped you from taking loans ? Is the bank loans they take your father's money ?

lol

Billyonaire: Are you sure you are normal ? Is the bank loans they take your father's money ? Did they stop you from taking your own loan ?

Slave!
Bloody Hypocrite!!
Na wetin you dey chop (crumbs from table) na im no dey let you get sense.

I know how much of my money I haven't been able to collect after I fixed it and got some transfers. From one story to another that what I get.

So because it isn't my father's money that's why they have emptied the whole capitals of the bank.

Thank has left people jobless because banks need to cost cost. That has made banks stop giving out loans to SME's which is aleviating the poverty rate in the country.

My brother I know you need to survive but please for once have a conscience.

I repeat: Where is the new list and the BALANCE SHEET?

[b]According to a source, some of the debtors who could not raise the needed cash are already following the footsteps of Otedola by surrendering their assets which include property scattered all over the country. Some are even said to have expressed their readiness to trade off their luxury items including private aircraft and yachts in order to clear their names. On why AMCON is silent on the identities of the affected companies since they have shown readiness to pay,the source said the corporation was just being careful until the deals are finalised before it gives them a clean bill of health. The source disclosed that because of the heat brought to bear on them by the publication of the list and the realisation that access to new facility had been effectively blocked by the CBN memo, some of the debtors have gone as far as withdrawing some of the cases they instituted against CBN and AMCON from court.[/b]

Only in Africa!!!!
EFCC. . .you dey read?

acidtalk:


Slave!
Bloody Hypocrite!!
Na wetin you dey chop (crumbs from table) na im no dey let you get sense.

I know how much of my money I haven't been able to collect after I fixed it and got some transfers. From one story to another that what I get.

So because it isn't my father's money that's why they have emptied the whole capitals of the bank.

Thank has left people jobless because banks need to cost cost. That has made banks stop giving out loans to SME's which is aleviating the poverty rate in the country.

My brother I know to need to survive but please for once have a conscience.

I seem not to understand you. The level of mistakes in your typing makes my stomach turn. Please summarize it and let me look at it again.

Please tell Sanusi to bring out the new list and the amount. I want to know if the one I paid back has been recorded. Please tell him.
Una never begin. I am yet to borrow my own. I will borrow the whole money in a bank and run to Afghanistan where the Taliban will protect me. Mumu Country.

Billyonaire: I seem not to understand you. The level of mistakes in your typing makes my stomach turn. Please summarize it and let me look at it again.

Any normal person (which you are not), will only know those are little typo error due to fast typing and NOT poor written english.

Get a brain surgery.
By the way, have you finally abandoned your "BEAF" Id?

Kenechy: My God is a merciful and a miracle God. Thank u my good Jesus

Why is it that even when Nigerians are being phacked in the azzzez with flaming pitch-forks, that their "Jesus" is always near-by?
Abi, misery always loves miserable company?

acidtalk:

Any normal person (which you are not), will only know those are little typo error due to fast typing and NOT poor written english.
Get a brain surgery. By the way, have you finally abandoned your "BEAF" Id?

Young man, Listen carefully. Do not blame your palpable stupidity on your keyboard skills, you can agree with me that you went to a good school but never paid attention to your teachers, just as you are jumping up and down on this forum like a castrated dog.

Most of the debtors owe the banks due to many reasons including the inability or decision of the FG not to pay off their Subsidy/Petroleum Supply debts cos of the on-going scrutiny. The CBN in the first place has no constitutional mandate to stop any Nigerian or Nigerian company from taking loans, but this action was taken because the debtors owing over 5B Naira did not make it a priority to pay up their debts. So, its a welcome development that they are responding and paying back. But I can understand that a poor man almost always blames the rich for their financial woes. I advise you to stop watching football, playing computer games and sitting on internet all time and develop a business plan and Executive summary and walk into any bank. If you are qualified for a loan you will get it. Stop insulting people who are paying your father salary to come and feed you. Nematode !

acidtalk:


Slave!
Bloody Hypocrite!!
Na wetin you dey chop (crumbs from table) na im no dey let you get sense.

I know how much of my money I haven't been able to collect after I fixed it and got some transfers. From one story to another that what I get.

So because it isn't my father's money that's why they have emptied the whole capitals of the bank.

Thank has left people jobless because banks need to cost cost. That has made banks stop giving out loans to SME's which is aleviating the poverty rate in the country.

My brother I know you need to survive but please for once have a conscience.

Acid Talk why are u wasting ur time talking to those bloody hypocrites Its obvious they know nothing about Banking game or else in a sane society people like Aig should be behind bars. They took loan of almost 20bil from Intercont bank without payin it back, and surprisingly the same acces turned out to buy over Intercont bank at takeaway price...Nigeria a Nation of Godfatherism but things will not continue like this for long, Sin must be punished! a time will come when a pharaoh that knows not joseph will rule over Nigeria and then it will be a payback period for all the hypocrites leaders n CEOs parading themselves as saints. Patiently waiting....

sessydoo:

Acid Talk why are u wasting ur time talking to those bloody hypocrites Its obvious they know nothing about Banking game or else in a sane society people like Aig should be behind bars. They took loan of almost 20bil from Intercont bank without payin it back, and surprisingly the same acces turned out to buy over Intercont bank at takeaway price...Nigeria a Nation of Godfatherism but things will not continue like this for long, Sin must be punished! a time will come when a pharaoh that knows not joseph will rule over Nigeria and then it will be a payback period for all the hypocrites leaders n CEOs parading themselves as saints. Patiently waiting....

You are derailing this thread. If you have evidences of these crime, please EFCC will love to hear from you. This thread is about CBN’s Crackdown On Bank Debtors Pays Off, and we should discuss based on the confine of the thread. But if you chose to insult my person, I will wholehearted whoop you the way Super Eagles disgraced Liberians yesterday.

Billyonaire:

I feel so sorry for your generation yet onborn because they will sure all suffer from your hypocrite talk.

By the way, I don't need no bank loan for anything. If there's anybody to pay anyone, the Banks are to pay me because they are still yet to release my funds to me under silly excuses. When I know clearly they are trading with it.

Secondly don't be daft my friend. Is Jimoh Ibrahim, Wale Babalakin, Aliko Dangote, Aig Imokhadia, Cosharis and others also part of the subsidy beneficials? The answer is a freaking No!

I see you strive on stu*pidity by misleading ignorant people on what isn't right.

Should I name 3 serving state governors who took a personal loan of over N6b each but have succeeded in twisting papers and turning it into their respective State indebtness to the banks.

Guy you are too small to trade words with.

You are just a hungry boy looking by all means to associate with the who is who in the society.

You used the name BEAF, until you got disgraced out now you are digging your own down fall again right?

acidtalk:

I feel so sorry for your generation yet onborn because they will sure all suffer from your hypocrite talk.

By the way, I don't need no bank loan for anything. If there's anybody to pay anyone, the Banks are to pay me because they are still yet to release my funds to me under silly excuses. When I know clearly they are trading with it.

Secondly don't be daft my friend. Is Jimoh Ibrahim, Wale Babalakin, Aliko Dangote, Aig Imokhadia, Cosharis and others also part of the subsidy beneficials? The answer is a freaking No!

I see you strive on stu*pidity by misleading ignorant people on what isn't right.

Should I name 3 serving state governors who took a personal loan of over N6b each but have succeeded in twisting papers and turning it into their respective State indebtness to the banks.

Guy you are too small to trade words with.

You are just a hungry boy looking by all means to associate with the who is who in the society.

You used the name BEAF, until you got disgraced out now you are digging your own down fall again right?

There he goes again, barking like a mad dog. When you wanna respond to me, Quote my statements the way I do to yours in order to expose your systematic mental deficiency syndrome.

This was my statement:

Young man, Listen carefully. Do not blame your palpable stupidity on your keyboard skills, you can agree with me that you went to a good school but never paid attention to your teachers, just as you are jumping up and down on this forum like a castrated dog.
Most of the debtors owe the banks due to many reasons including the inability or decision of the FG not to pay off their Subsidy/Petroleum Supply debts cos of the on-going scrutiny. The CBN in the first place has no constitutional mandate to stop any Nigerian or Nigerian company from taking loans, but this action was taken because the debtors owing over 5B Naira did not make it a priority to pay up their debts. So, its a welcome development that they are responding and paying back. But I can understand that a poor man almost always blames the rich for their financial woes. I advise you to stop watching football, playing computer games and sitting on internet all time and develop a business plan and Executive summary and walk into any bank. If you are qualified for a loan you will get it. Stop insulting people who are paying your father salary to come and feed you. Nematode !

I stated >>>>> most of the debtors
And if you can name 3 serving state governors, does it occur to you that the state governor can not borrow funds from bank without the consent of the State Assembly ? Meaning that the lending is for the state project ? Does it occur to you that you are so stupid that you cant even study global politics to know that states have rights to borrow funds for projects ?

You are daft to the extent that you even call me Beaf, what makes you assume that I am Beaf, I guess your generic stupidity.

@ Billyonaire: u must be a sagacious fool for running ur mouth without getting ur facts right. punk ass fellow.

Billyonaire: You are derailing this thread. If you have evidences of these crime, please EFCC will love to hear from you. This thread is about CBN’s Crackdown On Bank Debtors Pays Off, and we should discuss based on the confine of the thread. But if you chose to insult my person, I will wholehearted whoop you the way Super Eagles disgraced Liberians yesterday.

lol u re funny o Billionare, u go whoop me ke? wetin be my offence ke? i rili love ur sense of humour anyw.U see my annoyance wt this hypocrite of a guy called SLS is this...wonder why hes now ready to assist d Bank by running after their debtors. The other time he made us believe that it ws the Bank's MD that stole all the money and that was why they were distressed. Given that most of them were reckless wt lending but there are more matured ways to handle such matters without creating a systemic panic n failure in dat industry. Just imagine d numb of bank staff that hav lost their jobs to date....abegg this is not a place to begin to expose some ills in dat industry, just knw dat im talking from an informed position. All is still not well wt dat industry

sessydoo:

lol u re funny o Billionare, u go whoop me ke? wetin be my offence ke? i rili love ur sense of humour anyw.U see my annoyance wt this hypocrite of a guy called SLS is this...wonder why hes now ready to assist d Bank by running after their debtors. The other time he made us believe that it ws the Bank's MD that stole all the money and that was why they were distressed. Given that most of them were reckless wt lending but there are more matured ways to handle such matters without creating a systemic panic n failure in dat industry. Just imagine d numb of bank staff that hav lost their jobs to date....abegg this is not a place to begin to expose some ills in dat industry, just knw dat im talking from an informed position. All is still not well wt dat industry

You are making a point now, Yes, I stated that CBN had no constitutional mandate to stop people from taking loans, except that people owing above N5B didnt make it a priority to repay, which triggers the need for this illegality by CBN. SLS as a person has exhausted his working principles in running CBN, but I love his strict stance on policy. His actions on the banking sector has rendered many people jobless. I am not sentimental about a person, I chastise when there is need to while remaining glued to my interest.

DCAT: @ Billyonaire: u must be a sagacious fool for running ur mouth without getting ur facts right. punk ass fellow.

You have no right to insult my person, I guess you are not educated in the art of debate. Poor you!

Billyonaire:

There he goes again, barking like a mad dog. When you wanna respond to me, Quote my statements the way I do to yours in order to expose your systematic mental deficiency syndrome.

This was my statement:


I stated >>>>> most of the debtors
And if you can name 3 serving state governors, does it occur to you that the state governor can not borrow funds from bank without the consent of the State Assembly ? Meaning that the lending is for the state project ? Does it occur to you that you so stupid that you can even study global politics to know that states have rights to borrow funds for projects ?

You are daft to the extent that you even call me Beaf, what makes you assume that I am Beaf, I guess your generic stupidity.

OPEN YOUR EYES BAT!!!
I said they took PERSONAL LOANS and converted it into the states debt through twisting of papers.

Stop making me repeat myself fo*ol.
You are the first stutterer of the brain I have ever seen. You fight it an uphill task to assimilate the simplest of statements.

By the way, buzz off, I don't want to be the one to crash your already crumbling personality.

Even a less than wise person know that I am speaking the truth. But you being an advocate of corruption, deceit, lies and forgery will never admit the fact.

acidtalk:


OPEN YOUR EYES BAT!!!
I said they took PERSONAL LOANS and converted it into the states debt through twisting of papers.
Stop making me repeat myself fo*ol.
You are the first stutterer of the brain I have ever seen. You fight it an uphill task to assimilate the simplest of statements.
By the way, buzz off, I don't want to be the one to crash your already crumbling personality.
Even a less than wise person know that I am speaking the truth. But you being an advocate of corruption, deceit, lies and forgery will never admit the fact.

Point of correction little rabbit, do not keep 2 paragraphs per line cos you are consuming too much pages of Seun's Nairaland with your rubbish and factless assertions. If you have your proof, walk into the EFCC office and do not derail this thread further. Guess, you will not go to EFCC cos you have no proof. This thread is about Cbn’s Crackdown On Bank Debtors Paying Off. Little Rabbit!