Business
CBN to introduce new mechanism to stop bad debtors from accessing credit
The Central Bank of Nigeria (CBN) from 2019, will prevent bank bad debtors from assessing further credit from Nigerian banks with the deployment of the Global Standing Instruction (GSI).
The GSI, according to the CBN, will work with the Bank Verification Number (BVN) of depositors to detect bad borrowers who refuse to pay their loans but plan to take another loan from other unsuspecting banks.
The apex bank further revealed that the GSI will bring out the credit history of any debtor who plans to borrow from any bank, and all Nigerian banks would be provided such information.
Read also: Udoma predicts 3 percent economic growth in 2019
The mechanism, is expected to make it impossible for any borrower to get another loan from another bank without first repaying all outstanding loans.
It would be recalled that the CBN had said in its 2017 annual activity report that at the end of December 2017, the implementation of the BVN project recorded 31,426,091 registered BVNs and 43,959,282 accounts linked with BVNs, out of 66,974,029 active members.
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