E-Financial
Banks to Create, Share “Black Book” of Chronic Debtors
Chief executive officers of financial institutions have resolved to create and maintain what they term a ‘Black Book’ for the compilation of details of loan defaulters that will be shared among all their organisations.
They also agreed to blacklist such high-profile debtors.
The Body of Banks’ CEOs, as the group is known, announced this decision in a communique titled: “Review of Harassment and Criminalisation of Banks’ CEOs by Law Enforcement Agencies Based on Allegations by Bank Debtors,”
In addition, the meeting resolved that all banks must formally commit to collaborating with one another with a view to sharing details of chronic debtors and refusing them access to further financial services until they settle their indebtedness
They also resolved to engage the Central Bank of Nigeria on behalf of all banks on its need to adopt a “Reverse Reference” system for chronic debtors.
A reverse reference system involves black-listing of bad debtors and denying such customers as well as their directors further access to financial privileges through any financial services platform.
All cases of defaults would be presented and made to go through the Bankers’ Committee Ethics Committee, they noted.
The bank CEOs also disclosed plan to set up an Advocacy Group to write to and engage the regulators and other stakeholders on the dangers and implications of the continuous harassment of banks’ CEOs in the industry, the Nigerian economy and its effects on the reputation of the industry in the international community.
It said: “The group would also have the responsibility to work with legal councils and come up with ways and strategies to manage related cases effectively without disrupting businesses and the system.
“The meeting agreed that the activities of law enforcement agencies, working with chronic bank debt defaulters, to harass and criminalise banks’ CEOs is unacceptable, and is capable of adversely affecting the banking system vis-à-vis our reputation amongst international banks, destroying the economy, and therefore must be checked and managed.”
According to the statement, members noted the urgent need for all banks to cooperate and collaborate to identify and ex-communicate chronic debt defaulters.
The communique stated further: “This goes beyond publishing names of such defaulters in national media (which is inevitable), but involves all banks speaking with “one voice” and sharing information about those entities, and refusing to do further business with them until they settle their obligations.
“This initiative would make it necessary for banks to maintain ‘Black Books’ for the purpose of maintaining records of these customers and sharing same amongst banks and the regulatory authorities.
“There is need for banks to engage legal councils to advise the institution on the best approach/strategy to avoid further harassment.
“There is need to on-board and engage regulatory authorities, especially the Central Bank of Nigeria, to adopt a “Reverse Reference” system, which would basically involve “black-listing” of bad debtors and denying the customers as well as their directors from accessing further financial privileges through any financial services platform.
“In addition to the foregoing, there is need to present these cases before the Bankers’ Committee Ethics Committee,” it added.
The resolution by the chief executives of banks came exactly two weeks after the federal government resolved to bar debtors, both individuals and organisations, owing the Asset Management Corporation of Nigeria (AMCON).
Central Bank of Nigeria (CBN) has sanctioned nine deposit money banks (DMBs) for failing to ensure cash availability via automated teller machines (ATMs) during the festive season.
The banks have been fined a total of N1.35 billion for their non-compliance.
Each of the banks received a fine of N150 million.
The affected banks are Fidelity Bank, First Bank, Keystone Bank, Union Bank, and Globus Bank.
Others include Providus Bank, Zenith Bank, United Bank for Africa (UBA), and Sterling Bank.
A press release issued on Tuesday by Mrs Hakama Sidi Ali, acting director of Corporate Communications at the CBN, said, “In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria has sanctioned Deposit Money Banks for failing to make Naira notes available through automated teller machines, during the yuletide season.
“Each bank was fined N150m for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches. The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.
“The affected banks include Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc.”
Nova Bank has asked the Federal High Court in Lagos to wind up Sunrise Products Limited due to its alleged failure to pay back an outstanding debt of $2,587,891.21N276,567,150.63 allegedly owed to the bank.
The bank applied in a winding-up petition, claiming Sunrise Products Limited is bankrupt.
Despite repeated demands and the statutory three-week notice required under the Companies and Allied Matters Act (CAMA), the alleged debtor has failed to settle the outstanding debt.
The petition was filed before the Court on December 19, 2024, by Kemi Balogun (SAN), the bank’s lawyer, under case number FHC/L/CP/2357/24
In the petition, Nova Bank seeks the court’s permission to publish the winding-up notice in the Federal Government Official Gazette, a national daily newspaper, and other local publications distributed in Lagos State, where the company is registered.
The petitioner has also informed the court of a significant risk that Sunrise Products Limited may dissipate or dispose of its assets, potentially undermining any favourable judgment for the bank.
To address this concern, the bank filed a motion to protect the debtor’s assets by including the Central Securities Clearing System (CSCS) Plc and 21 other banks as respondents.
Therefore, the petitioner urges the court to order the Deputy Chief Registrar of the Federal High Court, Lagos, to be appointed provisional liquidator to oversee the company’s affairs until the winding-up order is granted.
The bank also asks the court for an interlocutory injunction to prevent the respondent, its directors, staff, and agents from withdrawing or tampering with the company’s funds in the listed banks.
The bank applied in a winding-up petition, claiming Sunrise Products Limited is bankrupt. Despite repeated demands and the statutory three-week notice required under the Companies and Allied Matters Act (CAMA), the alleged debtor has failed to settle the outstanding debt.
The petition was filed before the Court on December 19, 2024, by the bank’s lawyer, Kemi Balogun (SAN), under case number FHC/L/CP/2357/24
In the petition, Nova Bank seeks the court’s permission to publish the winding-up notice in the Federal Government Official Gazette, a national daily newspaper, and other local publications distributed in Lagos State, where the company is registered.
The petitioner has also informed the court of a significant risk that Sunrise Products Limited may dissipate or dispose of its assets, potentially undermining any favourable judgment for the bank.
To address this concern, the bank filed a motion to protect the debtor’s assets by including the Central Securities Clearing System (CSCS) Plc and 21 other banks as respondents.
Therefore, the petitioner urges the court to order the Deputy Chief Registrar of the Federal High Court, Lagos, to be appointed provisional liquidator to oversee the company’s affairs until the winding-up order is granted.
The bank also asks the court for an interlocutory injunction to prevent the respondent, its directors, staff, and agents from withdrawing or tampering with the company’s funds in the listed banks.
Nigerian Exchange Limited (NGX) has issued a stern warning against fraudulent activities, following reports of an individual and entity masquerading as affiliates of the Exchange.
In a strongly worded statement posted via its verified official X handle on Monday, the Nigerian Exchange Limited (NGX) cautioned the public about the actions of an alleged impersonator, ‘Professor Adebayo Oluwatokun,’ and a purported organization, ‘Value Gain,’ who are reportedly exploiting the trust of investors by falsely claiming affiliation with the NGX.
The pair are said to be operating a deceptive WhatsApp group, “NGX GroupA7,” designed to mislead and manipulate unsuspecting individuals.
NGX unequivocally clarified that neither ‘Professor Adebayo Oluwatokun’ nor ‘Value Gain’ has any association with the Exchange or its subsidiaries, nor are they registered Trading License Holders.
In a statement, NGX emphasized that all claims or communications originating from these individuals or entities are fraudulent, and the public is strongly urged to refrain from engaging with them.
The Exchange reaffirmed its dedication to safeguarding the interests of investors and maintaining the integrity of the Nigerian capital market. NGX encouraged individuals to promptly report any suspicious activities in order to prevent further exploitation.
This advisory comes in the wake of growing concerns over the rising incidence of fraudulent activities within the Nigerian capital market, particularly those linked to stockbrokers and dealing member firms.
There has been increasing scrutiny over the lax enforcement of Know Your Client (KYC) protocols, which some believe has facilitated these infractions.
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