A Bill for an Act to assist banks recover bad debts, scaled second reading at the Senate on Tuesday. This followed the adoption of a motion by the sponsor of the bill, Sen. Sani Musa (APC-Niger) during plenary.
Leading the debate on the general principles of the bill, Musa said that the proposed law would help to recover past and due obligations without recourse to the borrower as well as provide penalties for breaches.
He said that the essence was to enhance loan recovery in the Nigerian banking sector. He said that the legislation had become necessary because credit was seen as the lifewire of the banking business and the current situation in Nigeria demanded an injection of a healthy bank credit and recovery system that would effectively fasten the pace of growth in the financial sector.
“It is unfortunate that every lending institution finds itself from time to time with loans of which the risk of loss is greater than anticipated.
” In every lending environment, there…
Source: Guardian Newspaper