Fidelity bank card banner Camano banner
Expert says shaming of bank debtors is the way forward

By News Express on 06/08/2015

Views: 2,316


A financial expert, Dr. Uche Uwaleke, on Wednesday commended the Central Bank of Nigeria (CNB) for directing commercial banks to publish the names of bad debtors in newspapers.

Uwaleke told the News Agency of Nigeria (NAN) in Abuja that when debtors were embarrassed, they would be forced to repay whatever they collected.

He said, “The idea of naming and shaming in my view will make this people at least seek ways of making repayment.

“This people had been given ample time to pay their debts and they refused to pay, so they do not have any excuse for noncompliance.

“I think the directive by the CBN is a step in the right direction, it is the way forward.”

On the refusal of banks to collect foreign currency from customers, Uwaleke said the measure would curb illicit flows of currency associated with Nigeria's banking sector.

He said the measure would reduce money laundering and shore up the value of the naira, especially in the black market.

“The margin between the official market rate of the dollar and the parallel market rate has been wide.

“The measure will in no doubt increase the supply of foreign exchange in the black market.

“Because if banks refuse to accept foreign currency deposits into domiciliary accounts, people who have them will be forced to sell or keep them at home and face the risk.

Uwaleke said the measure was commendable, noting that it had begun to yield the required results as the naira was beginning to appreciate in the parallel market.

“If you notice, we are already beginning to feel the effect because since the introduction of this measure, naira in the parallel market seems to be appreciating.

“Before this measure was taken, the parallel market rate was around N250 to the dollar but now the rate is between N209 and N210 with an official rate of N197.

“So we are seeing a situation where in the near future the margin will keep on narrowing down to bridge the gap.”

According to him, Nigeria has been said to be among the top 10 countries in the world with illicit flow of funds.

He said the measure would step up the value of the naira in the parallel market and also discourage illicit transfer of funds.

“It will discourage people who deposit foreign currencies in domiciliary accounts and the next day, they are wiring them into foreign accounts.

“I am sure that this measure will no doubt reduce money laundering.”

He noted that the appreciation of the naira could also be tied to the recent forex ban of some items by the CBN.

Uwaleke said depreciation or devaluation of the naira was not in the interest of the country and the CBN should continue to review its policies to address the economic situation.

“The CBN should continue to watch and react to circumstances as they arise.

“They should not also lose sight of the fact that there may be fall outs but I know that in the long run the increase in the value of the naira will cancel out some of those speculations. (NAN)

Photo shows CBN Gov. Emefiele

 

Source News Express

Posted 06/08/2015 05:02:11 AM

 

 

CLASSIFIED ADS

 

You may also like...
Police swoop on suspected criminals in Katsina

NSCDC destroys illegal 250 refineries, arrests 118 suspects...

Arbor Networks’ ATLAS report underscores need for edge-to-edge...

Don’t consider Oshiomhole for board appointment, Edo APC...

NRC suspends Abuja-Kaduna train service

Secondary School Certificate — A compulsory requirement to...

Gunmen abduct Kaduna lawmaker, 3 others

Atiku’s wife loses N918m to guber aspirant

Nigeria, Cameroon brainstorm on how to crush Boko...

MTN hires another senior banker

Kaduna Govt. orders probe of rifles found in...

Boko Haram set to release abducted Chibok schoolgirls...

 

Latest News BREAKING: Buhari appoints Kyari NNPC GMD Iran's Revolutionary Guard shoots down US 'spy' drone The elephant in the room, a dent on its trunk, By Najatu Muhammad Suspect who made N200m from kidnapping in 6 months paraded in Abuja 300-level UNIBEN student commits suicide over alleged heart break Gunmen attack passenger bus in Rivers, abduct travellers Troops destroy Boko Haram camps in Borno, rescue children, women Police teargas, arrest 12 in Anambra during protest over 44-year-old land tussle Kidnapped ex-Health Minister’s son regains freedom INEC retrieves, re-issues over 70 Certificates of Return Court stops el-Rufai from licensing pastors in Kaduna Senate President Lawan retains Saraki’s aides

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (495,140 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (425,814 views) Shameless Genevieve Nnaji exposes breasts in public (365,699 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (312,272 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (276,542 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (244,201 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (234,241 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (216,131 views) 10 cars more expensive than Jets (213,267 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (204,681 views) Lagos plane crash: Journalist releases victims’ names (184,747 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (184,023 views)

 

NNPC 2019 National Science Quiz Competition

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (94) Business & Economy (4,318) Business Verdict (74) Columnists (1,052) Complaints & Requests (95) Enterprise & Opportunities (209) Entertainment (624) Features (762) Global Business Monitor (380) ICT Monitor (53) International (3,608) Interview (184) Live Commentary (30) Love Matters (162) Maggie's Blog (305) News (47,537) Opinion (1,263) Pidgin (17) Politics (11,041) Religion (1,026) Sports (2,045) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera