SENATE TO PASS BILL TO EMPOWER CREDITORS BANKS
Caroline Ameh
The Nigerian Senate is nearing passage of a law that will empower creditor banks to track the accounts of loan defaulters by means of the Bank Verification Number (BVN) to recover past and due obligations.
The law will also prescribe penalties for breaches and violations of obligations to enhance loan recovery in Nigeria’s banking sector.
This was made known during plenary on the Bill sponsored by Niger East Senator, Sani Musa.
The Bill seeks to among other things, put effective measures in place to prevent the collapse of banks.
He said it was regrettable that the bank, with private sector investments, would continue to record losses yearly while billions of its funds were with people who supposedly got loans for property development.
In their submission, a cross-section of the senators welcomed the Bill as it further underscores the need for safety measures in Nigeria’s banking sector.
Meanwhile, the Bill has been referred to the Senate Committee on Banking, Insurance and Other Financial Institutions with the mandate to report back in four weeks.
