… As GSI guidelines takes off 1st August
By LINDA JACOBS, Lagos
The Central Bank of Nigeria (CBN) today moved a step ahead of bank loan defaulters with a new guideline that allows seizing of their funds in other accounts.
According to the Asset Management Corporation of Nigeria (AMCON), 105 debtors were responsible for about Naira 4.5 trillion debt affecting the financial health of the Nigeria banking industry.
According the apex bank’s operational guidelines for Global Standing Instruction (GSI), this allows financial institutions to access funds of defaulting debtors that are deposited in other banks with effect from August 1, 2020.
The Global Standing Instruction, which is a mandate authorizing recovery of past due obligations from any and all deposit accounts maintained by a defaulter. The GSI is limited to debt recovery only and is limited to only individual accounts. Although it can be used recovery of repayment amount, the GSI cannot be used to recover any additional fees, charges or penal rate for default.
In a circular issued by the CBN Director, Financial Policy and Regulation Department, Kevin Amugo the GSI is targeted at facilitating an improved credit repayment system, reducing non-performing loans in the Nigerian banking system and watch-listing consistent loan defaulters.
The CBN in collaboration with stakeholders had last year developed the necessary protocls to facilitate a seamless implementation of the GSI process, including eligible loans granted from August 28, 2019.
Accordingly, it had issued the guideline to regulate the operations of the GSI which will be implemented with effect from August 1, 2020, as a way to enhance loan recovery across the banking sector.
The guideline states that the GSI shall serve as a last resort by a Creditor bank, without recourse to the Borrower, to recover past due obligations (Principal and Accrued Interest only, excluding any Penal Charges) from a defaulting Borrower through a direct set-off from deposits/investments held in the Borrower’s qualifying bank accounts with participating financial institutions.
To set up the mandate, customers will fill in their BVN, Credit Risk Management System (CRMS) number, the full repayment amount, the loan duration and the repayment account. The GSI is being maintained by NIBSS which is the custodian of BVN and holds records of all bank accounts in the country.
Once a debtor defaults on a loan, the GSI is triggered with the creditor bank activating the mandate on GSI Module specifying the recovery amount. Once triggered, the available accounts for recovery are identified, available balances for the accounts are retrieved and funds from the accounts according to Recover Logic are recovered.
Participating financial institutions by the GSI mandate must honor all transactions from NIBSS with a valid GSI Mandate code. The GSI Transactions can be triggered upon default on repayment, seven days after scheduled repayment date or before application of penal rates.
CIBN Forum: Emefiele To Unveil Banking Scorecard, Regulatory Roadmap
The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele is set to provide economic insight into the monetary policy and regulatory direction for the coming year at the 55th annual bankers dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN).
A statement by the head, marketing/ corporate communication & external relations, CIBN, Nelson Olagundoye recently, stated that the CBN governor who will be delivering the keynote address is also expected to present the banking industry score card for the current year at the event which will hold on Friday, November 27, 2020.
The event with strict adherence to the protocol against the spread of COVID-19 pandemic will be graced by over 1,500 participants across the world. This year’s edition of the Dinner will also be transmitted simultaneously through Zoom teleconferencing to accommodate participation across the globe.
Also, governor of Lagos State, Mr. Babajide Sanwo-Olu, and other state governors, are expected to grace the occasion as special guests of honour. President/Chairman of Council, CIBN, Bayo Olugbemi will deliver the welcome address while Registrar/CEO, CIBN ‘Seye Awojobi will give the vote of thanks.
The organising committee of this year’s edition of the dinner is chaired by the managing director/chief executive officer of Sterling Bank Plc, Abubakar Sulieman.
The annual bankers’ dinner is a thought-led socio-economic event of the Industry and being the biggest high-profile social forum annually organized by the Institute for the banking and finance industry, distinguished personalities including captains of industry, top Executives of Banks and non-bank institutions including CEOs and Chairmen, Diplomatic Missions, top government functionaries, legislators, accomplished businessmen, academics and other stakeholders are usually gathered to interact and network under a pleasant social setting.
Single Mother’s Hope Restored as Airtel Saves Infant with Hole in Heart
L-R: Head CSR, Airtel Nigeria, Chioma Okolie ; Airtel Touching Lives Season 5 Beneficiary, Baby Daniel & mother, Adeola Ayoola and Senior Business Manager, Airtel Nigeria, Oluranti Owoborode, during the presentation of N3million naira cheque to Baby Daniel for a heart surgery, under the company’s Airtel Touching Lives initiative recently in Lagos.
Leading telecommunication operator, Airtel Nigeria, has fulfilled its promise to save the life of Daniel Akani, a physically impaired child who was diagnosed with atrial septal defect, commonly known as hole in the heart at only 7 months old.
As part of the season 5 of its award-winning Corporate Social Responsibility initiative, ‘Touching Lives’, Airtel supported the child’s single mother, Adeola Ayoola with N3, 000, 000 (three million naira) for a surgery to repair the hole in his heart.
Daniel Akani, who also has Down syndrome, was diagnosed atrial septal defect after his mother noticed his abnormal breathing rate a few months after birth. The unemployed mother was advised by medical doctors to have the child undergo a surgery as well as regular physiotherapy treatment to help manage his physical condition.
The heart-rending story was brought to the attention of Airtel after an acquaintance nominated the mother and child for the telco’s Touching Lives initiative. The story was broadcasted on national TV during an episode of the acclaimed programme and saw Adeola narrate her ordeal, with the indigent mother revealing she had no means to financially support the frail infant.
Airtel promised the family financial support for medical treatment during the episode – the company has since fulfilled this commitment as the child has undergone the surgery and is now hale and hearty. During a recent visit to see the mother and child by the company’s representatives, Adeola expressed profound appreciation for the support, extoling the telecommunications giant for saving her only son’s life.
“Since Airtel’s intervention and subsequent surgery, my son’s physical and mental health has been perfect. He plays heartily now and can do things he usually was unable to. I really can’t describe how grateful I am to Airtel for what they have done.
“Daniel’s health has improved and I just can’t tell you how much that means to me. Thank you, Airtel, for touching our lives”, she stated.
Airtel Touching Lives is an inspiring corporate social responsibility initiative that seeks to offer practical relief, succor, hope, opportunities and credible platforms to liberate and empower the underprivileged, disadvantaged and hard-to-reach persons in the society.
Flutterwave Unveils Policy To Protect Online Shoppers
Flutterwave, Africa’s fast-rising payments technology company, has announced the launch of its ‘Payment Protection Promise’, a new policy that protects customers when shopping online and dealing with merchants on its payment platform.
The policy acts as a money-back guarantee to shoppers when an item or service purchased does not arrive, is faulty, damaged on arrival or does not match the item that was listed.
The new policy is part of the company’s attempt to alleviate the fears of online shoppers and boost their confidence and sense of security when using Flutterwave’s payment solutions.
The Payment Protection Promise is primarily meant to further strengthen the growing online shopping culture in Africa and displace the scepticism often associated with patronising e-commerce businesses.
The policy is being kick-started in Nigeria and covers only Nigerian transactions with a transaction value starting from N10,000 and below.
Founder & CEO of Flutterwave, Olugbenga Agboola, stated that, “the goal of the Flutterwave Payments Protection Promise is to ensure that all who shop online and pay with Flutterwave are confident that they can shop safely and get value for their money. We understand that with the rising online shopping culture in Africa, there are bound to be issues of lack of trust in online businesses and we are using this policy to close that gap.”
He added that “When anyone sees the Flutterwave logo while shopping online, we want them to feel safe and confident knowing that they are covered. This policy is also beneficial to our merchants as it will boost patronage and sales due to increased customer confidence and assurance of value.”
According to Agboola, under the Flutterwave Payments Protection Promise, merchants can file counterclaims when wrongly accused. However, merchants found to be repeatedly fraudulent will be delisted from Flutterwave’s payment platforms. The company has highlighted various means through which customers can dispute a transaction, they can either self-serve through the Flutterwave dispute page or make use of Flutterwave’s support channels.
Flutterwave has remained in the frontline of improving small businesses and securing customers through innovation. In April, at the height of the COVID-19 pandemic which led to restriction of movement, the company introduced the Flutterwave store to keep small businesses afloat. In the wake of the recent unrest in Lagos, the Company also partnered with the Lagos State Employment Trust Fund to rebuild affected businesses.
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