Bill to blacklist loan defaulters passes second reading in Senate

A Bill seeking to improve credit repayment culture and reduce non-performing loans in the banking sector passed second reading on the floor of the Senate, on Tuesday.

Sponsored by Senator representing Niger East, Mohammed Sani Musa, the bill equally sought to streamline loan recovery, beam searchlight on loan defaulters with the view to tracking and blacklisting them.

Senator Sani Musa while presenting his lead debate noted that “the core of the financial system of any country are the commercial banks because they have the potential to apply the full weight of their credit facilities for the development and growth of the country’s economy.”

He submitted that since “credit is seen as the bloodstream of the banking business the situation in Nigeria demands an injection of a healthy bank credit and recovery system that will effectively fasten the pace of growth.”

Musa further explained that the bill was intended to shield commercial banks and financial institutions from “bad borrowers” that constantly default on loan repayment.

“Before the deregulation of our banking system, the ability of our banks to recover loans has been the bedrock behind the collapse of many commercial banks with a dire consequence to many innocent account holders, which have resulted in the collapse of their businesses, loss of savings and even death.

“In many instances, most economies have consequently experienced high level and increasing rates of unemployment as a result of such negligence of the credit system.

“Today, the situation in Nigeria has become very serious and seemingly intractable and thereby frustrate our effort as a nation toward private driven economy as well as economic diversification and growth.

“In light of the above, there is only one obvious option left for any country where policy measures failed, which is to urgently enact legislation that will address the problems once and for all.”

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Deputy Senate President, Ovie Omo-Agege, who presided over plenary later referred the Bill to the Committee on Banking, Insurance and Other Financial Institutions for further legislative work.

Two bills seeking to establish the Nigerian French Language Village and the Federal University of Ankpa, Kogi State also passed second reading.

The former was sponsored by Senator representing Lagos West, Senator Olamilekan Solomon Adeola while Senator representing  Kogi East, Jibrin Isah sponsored the latter bill.

Presenting the lead debate for the establishment of the Nigeria French Language Village, Senator Adeola noted that the village provides the mandatory year-long Language Immersion Programme for all undergraduates of French Language Studies in Nigerian Universities and Colleges of Education.

According to him, the village which has been active teaching, research, learning, immersion and acculturation Centre, will receive legal backing with the passage of the bill into law by the National Assembly.

Senator Ovie Omo-Agege referred both bills to the Committee on Tertiary Institutions and TETFUND for further legislative work.

The Committee led by Senator Ahmad Baba Kaita is expected to report back in four weeks.

NIGERIAN TRIBUNE

Bill to blacklist loan defaulters passes second reading in Senate