Nigeria: Loan defaulters to lose deposits in other banks

Nigeria’s Central Bank has announced that loan defaulters will now lose their deposits in other banks. The move is in an attempt to reduce the rate at which customers of banks default in paying their loans. The central bank and other lending institutions agreed to seize the bank savings of customers that borrow money and refuse to pay back. Per the agreement all deposits in the defaulting customers’ other banks’ accounts will be used to service the unpaid loans. The decision was taken at the 345th Bankers Committee meeting in…

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