Fidelity bank card banner Emerald Energy Institute Camano banner

Expert says shaming of bank debtors is the way forward

By News Express on 06/08/2015

Gmail icon

Views: 2,392


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...
Ex-Minister Oby Ezekwesili, other BBOG activists arrested in...

Lagos PDP boosts Atiku’s presidential aspiration

Biafra: Abia Governor summons crucial meeting

Liverpool reclaim EPL top spot with easy win...

Nigeria ranks 3rd with premature birth globally

8th Senate passes 128 bills in 26 months...

Australia bans Huawei and ZTE 5G networks

Biafra Aid Foundation established in US

Kano Free Trade Zone must work under my...

Obiano commissions police quarters, says Anambra to remain...

Buhari will decide the next Senate president: Omo-Agege...

South East Governors congratulate Ugwuanyi on Supreme Court...

 

Latest News How IGP Mohammed Adamu hijacked recruitment of Police Constables — PSC Commissioner Presidential poll: Tribunal verdict can’t stand — PDP governors •Urges Supreme Court to do the right thing Why we’ll not congratulate Buhari on tribunal victory: Ohanaeze Ndigbo Drunken policeman stabs nine in club Presidential Poll: Buhari told a lie of a fundamental nature — PDP Campaign Spokesman Buhari vs Atiku: A different and broader perspective to the PEPT judgement $9.6bn judgment: Why we’re negotiating with P&ID — FG 2021: PDP vows to take over Anambra Okowa mourns Joe Utomi, declares him ‘a perfect gentleman-politician who distinguished himself in the service of his people’ Fidelity Bank donates laboratory to correctional home •Commended by Lagos Govt. for CSR projects Neither amalgamation nor colonisation is our problem, By Chukwudi Ohiri Bishop Kukah to speak on security, economy at GOCOP annual conference

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (540,180 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (442,803 views) Shameless Genevieve Nnaji exposes breasts in public (389,074 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (326,531 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (294,489 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (253,567 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (249,609 views) 10 cars more expensive than Jets (238,217 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (231,364 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (217,356 views) Lagos plane crash: Journalist releases victims’ names (195,748 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (193,362 views)

 

CBN milk production

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (102) Business & Economy (4,443) Business Verdict (80) Columnists (1,109) Complaints & Requests (96) Enterprise & Opportunities (215) Entertainment (664) Features (811) Global Business Monitor (442) ICT Monitor (63) International (3,952) Interview (203) Live Commentary (30) Love Matters (170) Maggie's Blog (410) News (51,343) Opinion (1,358) Pidgin (17) Politics (11,444) Religion (1,102) Sports (2,166) 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