Banks Begin to Debit Debtors’ Funds in Other Banks

Serial bank debtors have no hiding place for them again as banks begin to debit their various accounts to settle their debts.

It will be recalled that Central Bank of Nigeria (CBN) had given a global standing instruction which allows them to recover outstanding debts of debtors from other banks with effect from August 1, 2020.

Some Nigerians who spoke on the matter noted that such a policy was long overdue because the financial industry had suffered abuses from businessmen and customers.

According to them, the new policy is germane as it 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 (TUC), said the guideline was long overdue, stressing that it was better late than never.

Esele said that the financial system has been abused, adding that it is baffling that one man would owe six banks in the same country.

He explained that what the CBN is doing now is is sanitising the industry, stressing that “we now actually know who are the real businessmen and the real big men”.

He lamented that some men are wealthy from running banks down and urged the CBN and the banks to start giving credit score.