Delinquent debtors exploiting Nigeria’s judiciary to frustrate recovery –Emefiele

Delinquent debtors exploiting Nigeria’s judiciary to frustrate recovery –Emefiele

The Governor of the Central Bank of Nigeria, Godwin Emefile, on Tuesday said recalcitrant debtors had exploited the lack of prioritisation of credit recovery matters by the Nigerian judicial system to frustrate debt recovery efforts of financial institutions in the country.

The governor said this known in Abuja at a workshop for judicial officers on recent reforms of the banking financial services sectors in Nigeria: Banks and other Financial Institutions Act, 2020 in Focus.

Emefiele who was represented by the Deputy Governor, Financial System Stability, Aisha Ahmad, emphasised the importance of the judiciary in upholding CBN’s mandate and ensuring orderly operation of the financial system.

Speaking on the significance of the BOFIA 2020, he said the act was expected to reinvigorate the Nigerian banking sector as it would engender a sound and stable financial system that would support sustainable growth and development of the Nigerian economy.

He said the BOFIA 2020 also strengthened the Anti-Money Laundering and Combating Financing of Terrorism Framework by mandating regulated entities to comply with AML/CFT and cybersecurity regulations.

“This comes at a very auspicious time as the nation continues to advance in its adoption of digital economy; which has heralded the birthing of Nigeria’s Central Bank Digital Currency – the e-Naira,” he added.

Emefiele also pointed out that the BOFIA contained provisions to effectively manage unclaimed funds or abandoned property in dormant accounts maintained with banks, specialised banks and other financial institutions, as well as recovery tools for failing banks.

“BOFIA 2020 also provides enhanced recovery and resolution tools for failing banks, specialised banks and other financial institutions in order to prevent systemic crisis, maintain financial system stability and sustain depositor confidence,” he explained.

He said, “The Special Tribunal for the Enforcement and Recovery of Eligible Loans was introduced in the Act to accelerate credit recovery processes and enforcement of collateral rights.

“The Special Tribunal, together with the Bank’s Policy on Global Standing Instruction, will address the incidence of non-performing loans that has posed a great threat to the Nigerian financial system.”

He said that supervisory observance indicated that recalcitrant debtors had exploited the non-prioritisation of credit recovery matters in the Nigerian judicial system to frustrate debt recovery efforts by financial institutions.

Emefiele added that the apex bank was currently informally engaging key stakeholders in the judiciary to operationalize the provision.

Copyright PUNCH

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

Contact: [email protected]


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *