Senate Moves To Protect Creditor- Banks From Loan Defaulters

Leading the debate on the bill, Sen. Musa Sani, who sponsored the bill, said it will empower creditors bank through the means of Bank Verification Number (BVN) to recover past and due obligation without recourse to borrower, provide penalties for breaches and violations of obligations and enhance loan recovery across banking sectors in Nigeria; and for other related matters.

The President of the Senate, Ahmed Lawan, after the debate on the bill, referred it to the Senate Committee on Financial Institutions for consideration and report to the Upper Chamber within four weeks.

Lawan however maintained that the issue of unlimited personal liability in the bill, would be looked into during public hearing besides clause by clause examination of bill by the Assembly.

The Senate noted that a sound credit system remained the bedrock of any striving economy but a situation where people secure loans from different banks without repayment should be checked.

The Senate heard among others the need for bankers to design more sophisticated forms that would enhance loan recovery through unlimited personal guarantee of borrowers.