From August 1, Nigeria’s tribe of chronic bank debtors will no longer be able to escape paying their debts.
This is because the Central Bank of Nigeria, working in collaboration with the Bankers Committee, will begin implementing the Go-Live on the Global Standing Instruction.
The policy, according to a 13 July circular sent to all the banks, will enable a bank to recover money owed by a borrower, from deposits in another bank.
According to the CBN, the policy which was approved in February by the Bankers Committee, is meant to facilitate an improved credit repayment culture.
It is also meant to reduce non-performing loans in the banking sector and watch-list consistent loan defaulters.
Loans granted by the banks from 28 August 2019, are covered by the GSI policy.
Read the CBN Circular:
And the guidelines for the GSI implementation here: CBN – Operational Guidelines on Global Standing Instructions GSI – Individuals (1)