Any Legal minds or Lawyers in the house? Does Nigeria have corporate and personal Bankruptcy or Insolvency laws? If so, why are banks advertising debtors in newspapers instead of going to court to gain judgement and subsequently enforce judgement.


https://www.nairaland.com/nigeria/topic-310604.0.html
"The president has directed all law enforcement agencies to give their fullest support to efforts by the new management teams of the five banks , to recover the huge loans, the non-servicing of which placed the banks at risk of distress," Yar'Adua's office said in a statement on Sunday."

How can police / bailiff recover this money without judgement from the courts?

Could it be that there are loopholes in the law that companies are legally exploiting?

Let us know your thoughts.

I think the EFCC should let the banks work with the debtors to restructure.  If  a debtor owes N500 million debt and you decide to restructure, then you can add an extra N50 million.

http://www.nigeria-law.org/CompaniesAndAlliedMattersActPartXV-XVII.htm#Winding%20up%20of%20Companies

The Companies and Allied Matters Act (CAMA) recognises the imperatives of credit and therefore empowers a company to borrow money for the purpose of its business or objects and to mortgage or charge its undertaking, property and uncalled capital or any part thereof and issue debentures, debenture stock and other securities whether outright or as security for any debt, liability or obligation of the company or of any third party. 

Furthermore, CAMA recognises that in some cases the company may be unwilling or unable to pay its debts and consequently becomes insolvent, the law therefore provides various insolvency procedures, which a debenture holder may employ with a view to realizing his security when the company defaults in repayment of the debt.  These include inter alia the appointment of a receiver and the presenting of a petition to wind up the company. These insolvency procedures are put into place by CAMA to cope with the casualties thereby laying the foundation for a good insolvency regime.

http://seyiakinwunmi.com/2009/06/corporate-insolvency-law-in-nigeria-the-need-for-reform-ii/

CBN's "intervention" without consulting members of the house is already an imbroglio

Legal implications where? These people have been owing are do not intend to pay. You saw how ACCESS bank did gra gra before FEMI OTEDOLA paid and look at how much the same man is still owing other banks. The same ACCESS banks directors in their personal capacity are owing INTERCONTINENTAL bank who have written to CBN that the loan is performing - whatever that means. Dangote has drawn the CBN attention to a typographical error and has promised to resolve his own 2 billion debt. The rest are still studying the situation - at least they have like 5 more days to tell us how far. This is too bad, people living like lords with other peoples money, building edifices and living large. They and their families using the loans for personal frivolities.

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[size=21pt]poster i think u are part of the wahala

even in western country, the same f ukers will still be shamed in the news paper

they are lucky cuz here in UK; we could have been worse off for those idots[/size]

see how desperate the Dangote is tryin to shift the saga to his brothers in the company


kai pay ur debt billionaire nawohhhhhhhhhhhhhh

For a president whose every other sentence is rule of law this, rule of law that. I am just surprised that you can use police to collect debt without court judgement.

Ikeyman00 - In the UK Debts are not a police matter neither do they go to prison. The remedy is insolvency or bankruptcy. If I have made a mistake please correct me.

There are businesses that genuinely can't pay their debts, the problem is differentiating them from those that refuse to pay.

I just have a funny feeling that if the law is allowed to run its course, some of the removed MDs will be reinstated.

I know they are not all clean , however i think in trying to prove their uncleanliness, the CBN  may have been rather hasty, thereby leaving holes to be exploited legally.

There are claims and counter claims about the status of the performing and non-performing loans. Seriously i feel sanusi prosecuted a good job badly.

na_so:

I just have a funny feeling that if the law is allowed to run its course, some of the removed MDs will be reinstated.

I know they are not all clean , however i think in trying to prove their uncleanliness, the CBN  may have been rather hasty, thereby leaving holes to be exploited legally.

There are claims and counter claims about the status of the performing and non-performing loans. Seriously i feel prosecuted a good job badly.

I think you are are spot on, this whole action by sanusi get k leg from the beginning. It appears to be unconstitutional, Chapter 4 Section 37 states the following:

37. The privacy of citizens, their homes, correspondence, telephone conversations and telegraphic communications is hereby guaranteed and protected.

Though I'm impressed by Sanusi's decisiveness, his actions fall short of the rule of law
Yaradua has been harassing us with. The same rule of law that led to our Ribadu being
hounded into exile.

For me, this only confirms the double standards of Yaradua and that his actions against Ribadu
were motivated by other factors.