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CBN threatens to deduct money from loan debtors’ accounts

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THE Central Bank of Nigeria (CBN) has concluded on directly deducting loan defaulters under the Anchor Borrower Programme (ABP), as farmers ignore their debt obligation.

  This was made known by the CBN Senior Manager, Development Finance Office, Port-Harcourt, Celsus Agla, on Thursday, in a meeting with maize farmers and other stakeholders.

Agla said some farmers that obtained loan through the Anchor Borrower Programme have ignored appeals to repay, and some describe the loan as grant. This has led CBN into considering the Global Standing Instruction (GSI).

The Global Standing Instruction allows banks to deduct money from accounts of loan defaulters to settle their debt, “the GSI is a system whereby if you have an account with any bank outside say Unity Bank and there’s money in that account;

“because your BVN is attached to these loans if the GSI is triggered, the monies in those accounts can be collected to repay the loan to Unity Bank” he explained.

Although he said GSI will be the last resort to recover the overdue debt, “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.”

Multiple taxation worsening inflation, affecting many families – Traders tell govt

Nigerian traders, under the auspices of the Market Traders Association of Nigeria (MATAN) have disclosed that multiple taxation by the government will lead to more inflation across the country.

The traders, who spoke on Thursday in Ibadan, the Oyo State capital, added that multiple taxation by the government would lead to an increase in the price of goods and services.

The traders made these declarations during the flag-off of the benefit scheme enrollment for traders, held at the Lekan Salami stadium, Adamasingba, Ibadan.

Some of those who spoke at the event, included the National President of the association, Hon. Jamilu Abbas, MATAN Chairman in Oyo State, Princess Folasade Nurudeen, Chairman, Project Committee of the scheme, Amb Olakunle Johnson and MATAN Board of Trustee, Hon. Muhammad Labaran.

They explained that multiple taxation would affect many families negatively.

Abbas, while speaking, explained that the programme was organised in order to address the menace of multiple taxation imposed on traders by the government.

He lamented that market men and women in Nigeria are facing a lot of crisis in terms of multiple taxation.

He added that many of the traders were finding it difficult to survive, insisting that the federal government should address the issue of multiple taxation.

Abbas said, “We are here to tell the Federal Government to help us address the issue of multiple taxation and insecurities. And we want Nigerians to know that we don’t have any political affiliation with any individual or political party. We are doing our business as market men and women in the country.

“We are here to inaugurate State chapters of the association in South West for the benefits of the traders because without traders, there is no nation”.

Nurudeen, in her address, promised to run an inclusive government.

On his part, Johnson noted that the federal government was losing over N31 trillion to illegal tax collectors who were extorting Nigerian traders.

He said traders pay a lot of money before their goods could get to their destination, adding that the increase in the dollar rate against the naira was also another problem facing the traders.

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