Banks are exposing the businesses and people behind the mountain of debts threatening to kill the sector – courtesy of a Central Bank of Nigeria (CBN) directive that expired at the weekend.

Barring unforeseen developments, some banks will begin the publication of their debtors’ list today.

The publications are coming on the heels of the July 31, 2015 deadline set by the apex bank for the debtors to pay up.

The lists, an official of one of the banks said, is just a part of the whole. “Some debtors have entered into various payment schemes to avoid being shamed by this exercise,” the bank official, who pleaded not to be identified because of “the sensitivity of the action”, said.

The debtors are to be blacklisted and banned from participating in the foreign exchange market as well as trading in the Nigerian Government Securities market. The publication of the debtors’ lists is to be a continuous exercise.

Union Bank is owed huge sums by 176 debtors. Six customers collectively owe the bank N27.91 billion. They are Dec Oil & Gas, owing N15.7 billion following a 1999 contract finance loan that expired in 2000. The directors of the company are Patrick Ugboma and Pius U. Malaka.

Other debtors include Alliance Energy, which is owing the bank N4.92 billion. The term loan approved in 2004 expired 2006. The directors are Akinwale Omoboriowo, Kojo Anan and Timi Austen-Peters.

Hajaig Construction is owing the bank N2.99 billion on a loan approved in 2012 and which expired in 2014. The directors are Abdul Nasser Hajaig, Rud Wan Hajaig and Mohammed Hajaig.

Sapta International Industries Limited is owing the bank N1.87 billion over a 1987 term loan that expired in 1988. The directors are Alex Aloy Nwokodikwa and Clement Nwokodikwa.

Petroleum Project International has a debt of N1.25 billion over a term loan obtained in 2004 that expired in 2007. The directors are Akinwale Omoboriowo, Kojo Anan and Timi Austen-Peters.

Best Aluminum owes N1.11 billion for import and lease facilities obtained between 2010 and 2012. The directors are Chief Godwin Nweke and Chief Pius Nweke.

Read full story
http://monitor9ja.com/2015/08/banks-reveals-debtors-list-has-cbn-deadline-ended-july-31-2015/

Cool

where is it?

what am embarrassment

Have seen it already.

No surprises here. Truth is, there are certain line of businesses that require huge financing that can only be sourced either via loans or venture capital -- besides, sometimes loans may be required for needed expansions. The only problem here is the borrowers' failure to pay. Obtaining loan facilities isn't a crime, na failure to pay no good. That's why I sometimes prefer FDIs from foreigners (who come in with the needed cash/finance) coz our local investors often times end up borrowing so much money to setup big business, loans they end up defaulting on.

For a N500,000 loan to an individual, the banks asks for borrowers "arms and legs" as collateral.

For all this billion billion loans to "big" men, were the loans not "collaterised"?

There is federal character in the debtors distribution.

Funny thing is that all these guys are still walking on the streets flaunting these loans like big boys in the social circles.