CBN to lunch new mechanism for tracking debtors

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Habeebat Ajayi

The Central Bank of Nigeria has disclosed its plan to lunch new mechanism for tracking bad debtors who refused to pay back their loans to bank.

The Director Corporate Communication, CBN Mr Isaac Okoroafor, said the commission is planning to introduce a mechanism called, Global Standing Instruction (GSI) that will work with the Bank Verification Number (BVN) of debtors to detect bad borrowers who refuse to pay loans

Okoroafor added that the biometric identification was introduced to address identity theft, reduce exposure to fraud and enhance the banking industry’s chances of being able to fish out blacklisted customers, among others.

He added that the Global Standing Instruction would bring out the credit history of any debtor who planned to borrow from any bank, saying all banks in Nigerians will be provided such information.

“The mechanism will make it possible for any borrower to get another loan from another bank without first repaying all outstanding loans.

“The BVN was launched by the CBN with all banks in Nigeria for the banking industry in 2014.

“The number of active bank account according to the NIBSS data was 71.79 million and in most cases abandoned accounts carry relatively low balanced compared to active ones,” Okoroafor said.

However, information obtained by PLATFORM TIMES revealed that the commission will lunch the mechanism this year.

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