Deposit banks in Nigeria have published about 1,426 names of loan defaulters, following the directives of the Central Bank of Nigeria. Astoundingly, prominent Nigerian businesspersons and politicians have been featured in the list of billionaire and millionaire debtors and this may have an adverse effect on Nigerians.
In April, the Central Bank of Nigeria (CBN) directed all financial institutions to commence publication of the names of loan defaulters from August 1 in at least three national newspapers. Before the list was published, a three-month grace period, which expired on July 31, was given to the debtors.
Out of the 14 banks that have published their list, Unity bank had the highest number of loan defaulters, Union Bank ranked second, followed by Diamond Bank Plc. and Skye Bank Plc. at 260,176,173 and 107 names respectively.
It is also not surprising to note that the list published by these banks includes government investment companies and State House of Assembly. This can be attributed to the high level of corruption in all arms of the government where people are not held accountable for the funds allotted to them. It was quite shocking to find the defunct telecommunication company, Starcomms Ltd, as the highest defaulter on the list for Fidelity bank. They were given loans thrice by the bank in 2007, 2009 and 2011, which amounts to N3.09 billion. This same company is indebted to more than one bank.
This list could shed light on the various atrocities such as bribing bank officials to get loans and the “man-know-man” syndrome being perpetrated in the Nigerian banking industry
Effect on Nigerians
This CBN directive might adversely affect businesses of the companies involved and may do more harm than good to Nigeria’s economy since these firms do not only provide some of the most essential services in Nigeria but are also major employers of labour.
Meet some of the popular Nigerian millionaire/billionaire debtors
Mr Sam Nda Isaiah – Director Banana Republic
Mr Sam Nda Isaiah, a presidential aspirant for the All Progressives Congress (APC) 2015 presidential elections appeared on the list of delinquent debtors for Enterprise Bank. He is also the founder of the Leadership Newspaper Group. He currently owes Enterprise Bank Plc. a total of N114m.
Dr. Kalu Idika Kalu – Director BGL Securities Limited
Kalu served as the Minister of Finance. Minister of National Planning and Minister of Transport. His debt to First bank is N1.65bn.
Umar Mutallab – Director Deanshanger Project Limited
Umar, who owes Unity bank Plc N3.6bn, is the former Chairman of First Bank of Nigeria Plc (1999–2009). He is the chairman of Nigeria’s first Islamic bank, Jaiz Bank International Plc, which was established in 2003. He is also the father of Umar Farouk Abdulmutallab, the student who attempted to detonate plastic explosives aboard Northwest Airlines Flight 253.
Sir Emeka Offor – Director Global ScanSystem Limited
The controversial Nigerian government contractor Emeka Offor owes N181m to Diamond Bank. He is not new within the business and political circle.
Mrs. Abike Dabiri-Erewa- Director of Thriller Endeavours
The Nigerian politician and a former member of the Nigeria Federal House of Representatives, Abike Dabiri-Erewa owes Diamond Bank N122m. She was the Chairman of the House Committee on Media & Publicity. Although, her inclusion on the list has sparked up controversy as she took to twitter to tell Nigerians that she owes no one.
Senator Ayodele Arise and Mr. Dayo Adeyeye – Directors of International Payment Device
Senetor Ayodele Arise represented Ekiti North Senatorial district between 2007 and 2011. Mr. Dayo Adeyeye was a former minister of works during the administration of Goodluck Jonathan and a strong critic of President Muhammadu Buhari during the elections. Their firm owes Unity Bank Plc. N81.9m.
Solomon Ogba – Delta Mega Trend Limited
Ogba is the president of Athletic Federation of Nigeria. A sports enthusiast, who was the former Delta State Commissioner for sports, owes Diamond Bank Plc a whooping N89m.
