Connect with us

Business News

CBN’s Proposed Policy on Loan Defaulters Commendable – Experts

Published

on

CBN Plans to Recapitalize the Banking Sector Soon – Emefiele
Share

  •  

Financial experts say Central Bank of Nigeria’s (CBN) proposed policy that will ensure that loan defaulters forfeit their deposits in others banks is commendable.

They said this in separate interviews with the News Agency of Nigeria (NAN) in Abuja.

Mr Solomon Itodo, a financial expert said the policy was a good one if it could be implemented fully and all parties involved have clearly defined roles.

“It will boost lenders’ confidence knowing that repayment is not tied only to accounts being operated with them.

“This, however, is dependent on the level of cooperation among banks given the level of competition for customer patronage.

“Unless there are sanctions which will apply for non compliance or access to carry out debits by the creditor from these accounts, this will just be another policy with good intentions and no real substance.”

Itodo, however, said that the full provisions of the policy should be made known, otherwise  erring debtors would easily circumvent it in a number of ways like operating accounts in different company names or having accounts operated by proxies.

He added that to make the policy work, accounts which should be considered as payment accounts should include personal accounts and accounts of companies with directors.

Another financial expert, Mrs Grace Audu, said it would serve as a deterrent to people who collect loan from one bank and then disappear to go start another account in another bank.

According to her, it will help to totally sanitise the system.

She also said that some banks that had folded up or had to merge with other banks ran into problems because of such customers.

“Once CBN puts this into effect, the clause of Lien/set off will also apply in your accounts with other banks and not just the same bank.

“It will definitely reduce the bad loan portfolio of some banks, which will make them stronger and more profitable.”

Audu added that bank marketers would be able to breathe a sigh of relief as many of them do not like to market loans to small businesses because if they do not pay, the bank holds the marketers responsible.

This, she said, in turn makes many of the marketers lose their jobs.

“So this development will provide more guarantee for the marketers, and reduce the likelihood of losing their jobs because of  such customers”, she said.

Some bank customers also applauded the policy.

Mr Nduka Adibe, a civil servant, said it was a good initiative as he knew quite a number of civil servants who took loans from one bank and moved on to the next bank to operate other accounts without offsetting the previous loan.

He said that with the Bank Verification Number (BVN), it would be easier for banks to implement the policy.

Adibe, however, said that the CBN should fine-tune the policy in such a way that banks do not victimse honest borrowers by taking over their deposits in other banks before payment time for the loan was due.

Mr Aminu Abdulwahab, a businessman, said although the policy may discourage small business owners from making deposits in banks, it would go a long way in enhancing others got loans with ease.

This, he said, was because the borrowers would be made to reveal their true financial status in other banks, a move that would embolden the lenders to give out the money.

NAN reports that Mrs Aisha Ahmad, the Deputy Governor, CBN, on Monday at the 345th Bankers’ Committee Meeting in Lagos, said that the bank was proposing to implement a policy that would make loan defaulters forfeit their deposits in others banks. (NAN)

Business News

Budget Office Defends Tax Reform Acts, Seeks Due Process

Published

on

Share

By Tony Obiechina, Abuja 

The Budget Office of the Federation has reaffirmed the integrity of Nigeria’s newly enacted Tax Reform Acts, cautioning against what it described as governance by speculation and unverified claims following allegations of post-passage alterations.

In a statement on Wednesday, the Budget Office said it had taken note of concerns raised by the Minority Caucus of the House of Representatives, stressing that the sanctity of the law is central to constitutional democracy and not a mere procedural formality.

According to the Office, any suggestion that a law could be altered after debate, passage, authentication, and presidential assent without due process would strike at the core of the Republic and undermine citizens’ right to be governed by transparent and stable laws.

However, it warned that democratic integrity is also endangered by the careless amplification of unverified claims. “A nation cannot be governed by insinuation or sustained on circulating documents of uncertain origin,” the statement noted, adding that public confidence, once shaken by speculation, is often difficult to restore.

The Budget Office emphasized that both government and citizens share a common interest in truth, clarity, and due process, noting that public finance depends heavily on trust in the legality and clarity of fiscal laws. It welcomed the decision of the National Assembly to investigate the allegations, describing institutional inquiry, not conjecture as the appropriate response to claims of illegality.

On public access to the law, the Office agreed that Nigerians and the business community are entitled to clear and authoritative texts of all laws they are required to obey. It clarified, however, that the authenticity of legislation is determined by certified legislative records and official publication processes, not by informal or viral reproductions.

The statement also underscored the importance of separation of powers, warning that claims suggesting Nigeria is being governed by “fake laws,” if not backed by established facts, risk eroding confidence in democratic institutions.

 At the same time, it stressed that legislative scrutiny should not be dismissed by the executive, noting that oversight is a constitutional duty, not an act of hostility.

From a fiscal perspective, the Budget Office said legal certainty is essential for revenue projections, macroeconomic stability, budget credibility, and investor confidence. While it is not the custodian of legislative records, it maintained that uncertainty around operative tax provisions directly affects economic planning.

To restore confidence, the Office proposed a set of measures, including the publication of verified reference texts in a single public repository, orderly access to Certified True Copies for stakeholders, clear public explanations where discrepancies are alleged, and strict alignment of all implementing regulations with authenticated legal texts.

Addressing calls for suspension of the tax reforms, the Budget Office cautioned against allowing prudence to slide into paralysis. It argued that properly implemented tax reform is necessary to reduce dependence on borrowing and inflationary financing, while easing indirect burdens on vulnerable citizens.

“Where clarification is required, it must be provided; where correction is required, it must be effected; where investigation is required, it must proceed,” the statement said, adding that governance and reform should not be stalled by unresolved conjecture.

The Office concluded by describing taxation as a democratic covenant that binds citizens and the state, insisting that compliance depends on transparency and trust. It called on political actors to protect institutions as much as positions, urging citizens and businesses to rely on verified sources and resist the spread of unauthenticated information.

The statement was signed by Tanimu Yakubu, Director-General of the Budget Office of the Federation, who reaffirmed the agency’s commitment to fiscal transparency, institutional integrity, and reforms that advance national prosperity while safeguarding citizens’ rights.

Continue Reading

Business News

Tinubu Congratulates Dangote on World Bank Appointment

Published

on

Share

By Jennifer Enuma, Abuja

President Bola Tinubu has congratulated Alhaji Aliko Dangote, the President of Dangote Group, on his appointment to the World Bank’s Private Sector Investment Lab, a body tasked with promoting investment and job creation in emerging economies.

In a statement by Special Adviser on Media and Publicity, Bayo Onanauga, the President described the appointment as apt, given Dangote’s rich private sector experience, strategic investments, and many employment opportunities created through his Dangote Group.

The Dangote Group became one of Africa’s leading conglomerates through innovation and continuous investment.

Dangote Group’s business interests span cement, fertiliser, salt, sugar, oil, and gas. However, the $20 billion Dangote Petroleum Refinery and Petrochemicals remains Africa’s most daring project and most significant single private investment.

“President Tinubu urges Dangote to bring to bear on the World Bank appointment his transformative ideas and initiatives to impact the emerging markets across the world fully” the statement said.

The World Bank announced Dangote’s appointment on Wednesday, as part of a broader expansion of its Private Sector Investment Lab. The lab now enters a new phase aimed at scaling up solutions to attract private capital and create jobs in the developing world.

The CEO of Bayer AG, Bill Anderson, the Chair of Bharti Enterprises, Sunil Bharti Mittal, and the President and CEO of Hyatt Hotels Corporation, Mark Hoplamazian, are on the Private Sector Investment Lab with Dangote.

The World Bank said the expanded membership brings together business leaders with proven track records in generating employment in developing economies, supporting the Bank’s focus on job creation as a central pillar of global development.

Continue Reading

Business Analysis

Nigeria Customs Generates over N1.75trn Revenue in 2025

Published

on

Share

By Joel Oladele, Abuja

The Nigeria Customs Service (NSC) has generated an impressive N1,751,502,252,298.05 in revenue during the first quarter of 2025.

The Comptroller-General (CG) of the Service, Bashir Adeniyi, disclosed this yesterday, during a press briefing in Abuja.

According to Adeniyi, the achievement not only surpasses the quarterly target but also marks a substantial increase compared to the same period last year, reflecting the effectiveness of recent reforms and the dedication of customs officers across the nation.

“This first quarter of 2025 has seen our officers working tirelessly at borders and ports across the nation.

I’m proud to report we’ve made real progress on multiple fronts—from increasing revenue collections to intercepting dangerous shipments,” Adeniyi stated.

He attributed this success to the reforms initiated under President Bola Tinubu’s administration and the guidance of the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun.

The CG noted that the revenue collection for Q1 2025 exceeded the quarterly benchmark of N1,645,000,000,000.00 by N106.5 billion, achieving 106.47% of the target. This performance represents a remarkable 29.96% increase compared to the N1,347,705,251,658.31 collected in Q1 2024.

Adeniyi highlighted the month-by-month growth, noting that January’s collection of N647,880,245,243.67 surpassed its target by 18.12%, while February and March also showed positive trends.

 “I’m pleased to report the Service’s revenue collection for Q1 2025 totaled N1,751,502,252,298.05.

“Against our annual target of N6,580,000,000,000.00, the first quarter’s proportional benchmark stood at N1,645,000,000,000.00. I’m proud to announce we’ve exceeded this target by N106.5 billion, achieving 106.47% of our quarterly projection. This outstanding performance represents a substantial 29.96% increase  compared  to  the  same  period  in  2024,  where  we  collected N1,347,705,251,658.31.

“Our month-by-month analysis reveals even more encouraging details of this growth trajectory,” Adeniyi said.

In addition to revenue collection, Adeniyi said the NCS maintained robust anti-smuggling operations, recording 298 seizures with a total Duty Paid Value (DPV) of ₦7,698,557,347.67.

He stated that rice was the most seized commodity, with 135,474 bags intercepted, followed by petroleum products and narcotics.

“From rice to wildlife, these seizures show our targeted approach,” Adeniyi remarked, noting the NCS’s commitment to combating smuggling and protecting national revenue.

Adeniyi also highlighted key initiatives, including the expansion of the B’Odogwu customs clearance platform and the launch of the Authorized Economic Operators Programme, which aims to streamline processes for compliant businesses. The NCS’s Corporate Social Responsibility Programme, “Customs Cares,” was also launched, focusing on education, health, and environmental sustainability.

Despite these achievements, the CG noted that the NCS faced challenges, including exchange rate volatility and non-compliance issues. Adeniyi acknowledged the need for ongoing adaptation and collaboration with stakeholders to address these challenges effectively.

Looking ahead, the NCS aims to continue its modernization efforts and enhance service delivery, ensuring that it remains a critical institution in Nigeria’s economic and security landscape.

“Results speak louder than plans; faster clearances through B’Odogwu, trusted traders in the AEO program, and measurable food price relief from our exemptions. We’ll keep scaling what works,” he concluded.

Continue Reading

Advertisement

Top Stories

NEWS5 hours ago

APC Stakeholders Condemn Killings In Benue, Urge Govt’s Action

ShareBy Elijah Oguche, Abuja Stakeholders of the All Progressives Congress (APC) in Benue State have condemned the worsening State of...

NEWS10 hours ago

Alleged Forgery: Civil Society Group Urges PDP NWC to Drop Nnaji, Pick Nnamani

ShareBy David Torough, Abuja The Defence for Democracy, has reiterated earlier call on the leadership of the People’s Democratic Party...

NEWS18 hours ago

Nigerian Army at 163: Legacy of Sacrifice, Service and Transformation

ShareBy Sumaila Ogbaje When officers, soldiers and defence stakeholders gathered in Port Harcourt for the Nigerian Army Day Celebration (NADCEL)...

view point19 hours ago

What the Oyo Situation Teaches about Nigeria’s Emerging Security Doctrine

ShareBy Crispin Oduobuk There are moments when an entire nation seems to breathe again. The announcement on Friday, 10 July...

NEWS19 hours ago

Fintiri Swears in Newly Elected Council Chairmen

ShareAdamawa State Gov, Ahmadu Fintiri, on Wednesday, swore in 21 newly elected council chairmen to administer the local governments in...

Education19 hours ago

NECO Targets Full CBT Transition as Hitch-free Exam Boosts Confidence

ShareThe Minister of State for Education, Prof. Suwaiba Ahmad has expressed satisfaction with the conduct of the National Examinations Council...

POLITICS19 hours ago

Adeleke’s Call for Visa Ban on APC Stalwarts Sign of Political Jitters, Says Oyebamiji

ShareFrom Ayinde Akintade, Osogbo The governorship candidate of the All Progressives Congress (APC) in the forthcoming gubernatorial election in Osun...

Foreign News19 hours ago

Midnight Social Media Curfew Proposed for UK Teens Aged 16, 17

ShareOlder teenagers in the UK will face an overnight social media curfew, the government has announced – though they will...

Foreign News19 hours ago

UN Forum Participants Discuss Role of Private Sector in Achieving SDGs

ShareThe 2026 UN Global Business Forum on the Sustainable Development Goals (SDGs) has concluded, with participants calling for a greater...

NEWS19 hours ago

Aliko Dangote: Africa’s Industrialist-in-chief

ShareBy Wale Osofisan Aliko Dangote’s rise from a trader from Kano to the builder of some of Africa’s most important...