Banks tighten noose on debtors. begin debiting debtors’ accounts in other banks

Tough times lie ahead for serial bank debtors as there is no a hiding place for them as banks begin to debit their various accounts to settle their debts.

The Central Bank of Nigeria had put in place the global standing instruction which allows them to recover outstanding debts of debtors from other banks. The rule came into effect on August 1, 2020.

A cross section of Nigerians who spoke on the matter said such a policy was long overdue as the financial industry had suffered abuse from businessmen and customers.

They said the new policy would bring out credible and bad people who deprive banks of their money by refusing to pay back credit extended to them.

Peter Esele, a former president, Trade Union Congress,said the guideline was long overdue but added that it was better late than never.

He said, “The financial system has been abused and it is baffling that one man would be owing six banks in the same country; it can’t happen anywhere else.

“What the CBN is doing now is that it is sanitising the industry and we now actually know who are the real businessmen and the real big men.

“Some men are wealthy from running banks down because a lot of the big men are running banks down.”

He said the CBN and the banks should start giving credit score.