The Nigerian Senate on Tuesday considered and passed for second reading, a bill for an Act that will empower creditor banks to go after loan defaulters and recover their loans without recourse to the borrower.
The bill which is sponsored by Senator Musa Mohammed Sani, (APC Niger East), seeks to establish, “a unified scheme for a sound financial system, using data from the Bank Verification Number, BVN, to track defaulters.
In his lead debate, Sani said, the proposed law has become imperative to sanitize and improve credit repayment culture in the country, especially as it has become evident, that policies have not been enough.
The Bill contains 11 sections, with provision for penalties, breaches which include, blacklisting defaulters and putting them on “a watchlist.”
In his contribution, Senator Jubrin Isa, (APC, Kogi East), welcomed the proposed law and called for a provision that will make defaulters forfeit their assets (tangible or intangible), anywhere in the world.
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Senator Tayo Odebiyi, APC, Ogun, also threw his weight behind the finance bill, stressing the need to put measures in place, to protect the economy.
Senator Sam Egwu, PDP Ebonyi North, however, cautioned that the proposed law should be flexible, to accommodate a few isolated cases, citing the instance of farmers, who suffer unforeseen calamities such as flood.
He said even when the farmers insure their farms, insurance companies often decline their claims.
Egwu suggested that such isolated cases should be captured in the drafting of the proposed law.
Subsequently, the Senate referred the bill to its Committee on Banking and Insurance, for further legislative work.
It is to revert back in 4 weeks.
(Editor: Ifeanyi Mark)
