Since the banking reforms started by Lamido Sanusi, governor, Central Bank of Nigeria, CBN, exposed the huge debt profile of banks, which accumulated through unsecured loans, uneasy calm has pervaded the industry. At the last count, over N1.6 trillion are said to be owed banks by various individuals and corporate entities. The import of this is that banks have now cut down on granting credit facilities even to genuine business concerns, a situation experts agreed, is not good for the country’s economy. Now, with the apex bank tightening the noose on commercial banks and other financial institutions, no stone seems to be left unturned in the drive to recover such monies, which may eventually b classified as bad debt.

Last week, Yemi Adeola, managing director and chief executive officer, CEO, Sterling Bank, re-echoed the need for debt recovery while receiving members of the Business Recovery and Insolvency Practitioners Association of Nigeria, BRIPAN. According to him, the industry needed the joint collaboration of all stakeholders in the country to ensure that debts owed banks are fully recovered. According to him, it is essential that the BRIPAN should restrategise and explore ways on how it could assist banks recover the over N1.6 trillion bad loan portfolio as well as getting involved in tackling current issues in the financial industry in the country.

“We are going through a phase where there are a lot of delinquent loans in the country and that is bringing the economy down. The association needs to get its house in order by having rules and regulations that will bind its members; this will make you act more professionally. You need to also

work together under an umbrella and influence positive changes in the area of loan recovery, restructuring, amalgamation, liquidation, turnaround among others. Today, we are not seeing enough of that. The association can make that happen,” he said, assuring that Sterling Bank will seek areas of collaboration with the association to find a way of bringing its elusive debtors to book.

While noting that receivers have not been allowed to function properly as a result of court injunctions secured by debtors, he reasons that the association, if under one formidable umbrella, could help in correcting some controversial developments. “I am happy that you are beginning to come together. We have requested for a list of members of the association. We are going to profile them and see those we believe will be of service to our organisation and we’ll engage them and make use of them to help us turn round our loan portfolio where we have delinquencies,” he noted.

Seyi Akinwunmi, president, BRIPAN, recalled that the association had always been a partner to banks, and has assisted financial institutions in various ways in the past. “We are an association of practitioners. We work with the financial sector. We did a lot of work in the last few years but many of the financial institutions are not aware of how much work we have been doing for ourselves and on their behalf; hence, our decision to come and tell them how we can help and what we have been doing to help them in the recovery of their loans and how the legislation affects their work”, he explained.

 

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