Banking
Nigerian Senate Discusses Bill to Punish Loan Defaulters
By Dipo Olowookere
One of the major headaches of banks in Nigeria is the recovery of loans to customers and because of this, many of them are reluctant to grant credit facilities.
It was only recently financial institutions were forced to issue loans to their customers when the Central Bank of Nigeria (CBN) mandated them to meet a loan-to-deposit ratio of 60 per cent and later to 65 per cent.
The interpretation of this CBN policy is that 65 per cent of a bank’s total customer deposits must be given out as loans. Failure to adhere to this directive attracts fines from the apex bank. A few of them have been sanctioned for this infraction.
The idea behind this, according to the central bank, was to ensure that funds are made available to the real sectors of the economy, especially the manufacturing, the SMEs and others, so as to spur economic activities and boost the nation’s gross domestic product (GDP).
The banks reluctantly adhered to this instruction and those who failed were punished, but the issue of loan recovery was not fully addressed despite the rise in credit bureau agencies in the country.
But to strengthen the financial system and ensure quick loan recovery process, the Senate is looking to come up with laws that would punish loan defaulters.
On Tuesday, a bill for an act to establish a unified scheme for a sound financial system passed second reading at the Senate and was referred to the committee on banking insurance and other financial institutions for scrutiny, with a mandate to report back in four weeks.
According to the sponsor of the bill, Mr Sani Musa, when passed into law, banks would have the authority to track loan defaulters’ account in any financial institution in the country through the Bank Verification Number (BVN).
When this is done, the bank would be empowered to recover the loans from the bank account of the defaulter.
He further said the law will provide penalties for breaches and violations of obligations, thereby enhancing the loan recovery process across banking sectors in Nigeria.
“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 negligences of the credit system.
“Today, the situation in Nigeria has become very serious and seemingly intractable and thereby frustrates 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,” Mr Sani submitted.
Speaking further, the lawmaker described lending as the core business of commercial banks, noting that if they are unable to grant loans because of a bad recovery process, the nation’s economy might suffer for it.
“Credit is seen as the bloodstream of the banking business [and] the [current] situation in Nigeria demands an injection of a healthy bank credit and recovery system that will effectively fasten the pace of growth,” he added.
In his contribution, his colleague at the red chamber, Mr Tolu Odebiyi, said, “I think this is a very timely bill and it will safeguard our economy and creditors from defaulters.”
On his part, the Deputy Senate President, Mr Ovie Omo-Agege, who presided over the session, applauded the sponsor of the bill, stating that, “Clearly, there are challenges in the sector that we need to address and this bill seeks to do just that.”
By Modupe Gbadeyanka
The Chartered Institute of Bankers of Nigeria (CIBN) has promised to support the ambitious plans of the Association of Corporate and Marketing Professionals in Banks (ACAMB).
At a meeting between the leaderships of the two organisations on Tuesday, the president of CIBN, Professor Pius Deji Olanrewaju, said it was impressed with the capability development and the undergraduate mentorship schemes of ACAMB under its leader, Mr Jide Sipe.
The CIBN chief commended the forward-thinking vision of the group, saying it had raised standards across Nigeria’s banking sector.
“ACAMB’s support has given CIBN and the banking sector brand equity,” he said, praising the association’s record in reputation management. recalling ACAMB’s role in addressing crises within the sector, describing the partnership as strategic and beneficial.
He further pledged support for ACAMB’s 30th anniversary in September 2026, its AGM, and other programmes, including fundraising initiatives.
“I want to assure you that everything you have presented today has been clearly noted and will be acted upon.
“We are fully committed to working closely with you so as to translate these discussions and vision into measurable progress. Our shared goal is to strengthen the sector, protect its reputation, and enhance its public image in a meaningful and lasting way.
“This meeting discussed various initiatives and reforms crucial for the future of our industry, including the need for continuous training and adaptation to new programs,” Mr Olanrewaju stated.
Speaking at the meeting, the president of ACAMB described the visit as a crucial first step in his tenure, aimed at contributing significantly to giving flight to his vision and that of ACAMB.
“When we assumed office, one of the first things we agreed on was the need to visit key stakeholders.
“However, before reaching out more broadly, we felt it was important to begin with our primary constituency and core stakeholders. We want them to understand the direction we are taking and to support the work we are doing, so that ACAMB can achieve greater success than it has in the past.
“We couldn’t have properly started our tenure without this very important meeting with the CIBN,” Mr Sipe stated
He introduced the newly constituted ACAMB Exco, which includes the 2nd Vice President, Morolake Phillip-Ladipo; General Secretary, Olugbenga Owootomo; Assistant General Secretary, Ademola Adeshola; Publicity Secretary, Abiodun Coker; and Executive Secretary, Fadekemi Ajakaiye.
By Modupe Gbadeyanka
Registration for the second HerFidelity Apprenticeship Programme (HAP 2.0) organised by Fidelity Bank Plc has commenced.
The Divisional Head of Product Development at Fidelity Bank, Mr Osita Ede, informed newsmen that the initiative was designed to empower women with sustainable entrepreneurship skills.
The lender created the flagship women-empowerment initiative to equip women with practical, income‑generating skills and structured pathways to entrepreneurship.
“HerFidelity Apprenticeship Programme 2.0 reflects our commitment to continuous improvement. Having evaluated feedback from the first edition, we have returned with stronger partnerships and deeper mentorship programmes to ensure that women acquire not just skills, but sustainable economic opportunities,” he said.
“At the heart of the programme is guided, real‑world learning. Participants will undergo intensive apprenticeship training under reputable institutions and industry experts across select fields such as hair styling, shoe making, auto mechatronics, and interior decoration,” Mr Ede added.
He noted that HerFidelity Apprenticeship Programme 2.0 goes beyond skills acquisition by offering participants a wide range of business advisory services. These include business and financial literacy training, mentorship support throughout the apprenticeship journey, access to Fidelity Bank’s women‑focused and SME financial solutions, as well as guidance on business formalisation and growth strategies.
Further emphasising the bank’s vision, Mr Ede said, “By integrating structured mentorship with entrepreneurial development, Fidelity Bank is positioning women not just as trainees, but as future employers, innovators, and economic contributors within their communities. This aligns with our mandate to help individuals grow, businesses thrive, and economies prosper.”
By Modupe Gbadeyanka
A new branch of The Alternative Bank (AltBank) has been opened in Ondo State as part of the expansion drive of the financial institution.
A statement from the company disclosed that the new branch would support export-oriented agribusinesses through Letters of Credit and commodity-backed trade finance, ensuring that local producers can scale beyond state borders.
For SMEs, the bank is introducing robust payment rails, asset financing for equipment and inventory, and supply chain-backed facilities that strengthen working capital without trapping businesses in interest-based debt cycles.
The Governor of Ondo State, Mr Lucky Aiyedatiwa, represented by his Chief of
Staff, Mr Olusegun Omojuwa, at the commissioning of the branch, underscored the importance of financial institutions in economic development.
“The pivotal role of financial institutions to economic growth and development of any economy cannot be overemphasised. It provides access to capital, supporting small and medium-scale enterprises and encouraging savings.
“Therefore, I have no doubt in my mind that the presence of The Alternative Bank in Ondo State will deepen financial services, create employment opportunities and stimulate economic activities across various sectors,” he said.
In her remarks, the Executive Director for Commercial and Institutional Banking (Lagos and South West) at The Alternative Bank, Mrs Korede Demola-Adeniyi, commended the state government’s leadership and outlined the lender’s long-term vision for Ondo State.
“As Ondo State steps into its next fifty years, and into the future anchored on the sustainable development championed during the recent anniversary celebrations, The Alternative Bank is here to be the financial engine for that vision. We didn’t come to Akure to hang banners. We came to fund work, farms, shops, and factories.”
With Ondo State’s economy anchored largely on agriculture, particularly cocoa production, poultry farming, and other cash crops, alongside a growing SME and trade ecosystem, AltBank is deploying sector-specific financing solutions tailored to these strengths.
For cocoa aggregators, processors and poultry operators, the bank will provide production financing, facility expansion support, machinery lease structures, and structured trade facilities under its joint venture and cost-plus financing models, with transaction cycles of up to 180 days for commodity trades and longer-term structured asset financing for equipment and infrastructure.
The organisation is a notable national non-interest bank with a physical network now surpassing 170 locations, deploying capital to solve real-world challenges through initiatives such as the Mata Zalla project, which saw to the training of hundreds of women as electric tricycle drivers and mechanics.
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