Finance Houses Association of Nigeria (FHAN), Mr. Samuel Durojaye
Some bank shareholders have expressed support for the decision of the Central Bank of Nigeria (CBN) to blacklist those that are indebted to the Asset Management Corporation of Nigeria (AMCON), to the tune of N5 billion and above.
According to the shareholders, who spoke with THISDAY, the action by the banking sector watchdog would instil discipline in the system.
The CBN had in a move aimed at strengthening financial stability and instilling discipline in the banking sector, blacklisted 113 companies as well as their principal shareholders and directors where the outstanding value of the loans purchased by AMCON amounted to N5 billion or more from taking further credit from banks, until full liquidation of the agreed indebtedness.
President Renaissance Shareholders Association, Mr. Olufemi Timothy, said: “It is a very good development. A situation where someone is owing and you give that person some concession and still he is not willing to pay, I think the best thing to do is to stop that person from getting further credit.
“The decision by the central bank is commendable and we must all support the CBN. The policy should be fully implemented and should not be politicised.”
President, Nigeria Shareholders Solidarity Association (NSSA), Chief Timothy Adesiyan, described the latest move by the central bank as a major antidote to banking failure and further step in the protection of their investments. According to him, blacklisting the debtors would make them to pay up.
General Secretary, Independent Shareholders Association of Nigeria (ISAN), Mr. Adebayo Adeleke, argued that while there was nothing wrong in taking loans for useful purposes, there should always be the willingness to pay back.
Also, President, Finance Houses Association of Nigeria (FHAN), Mr. Samuel Durojaye, said “for those debtors who are in a position to pay, but cannot pay, the decision to bar them from the credit market is right.”
He however added: “But there are some debtors that want to pay, but are constrained because of the economic situation. Such people should be given the opportunity to be able to access credit to expand or revive their businesses.
“There should be a distinction between those debtors who are in a position to pay, but have refused to pay and those who need support to be able to perform on their outstanding obligation. AMCON and CBN should be able to look at this case-by case and where there is need for support and repackaging of the businesses involved.”