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Loans recovery bill that empowers banks to deduct money from account of defaulters via BVN passes 2nd reading

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Loans recovery bill that empowers banks to deduct money from account of defaulters via BVN passes 2nd reading

Loan defaulters may no longer have any escape route as new bill that empowers banks to deduct money from their bank accounts via BVN has passed second reading at the Senate. 

The bill is seeking to allow creditors bank to track the account(s) of loan defaulters through Bank Verification Number (BVN) and recover past and due obligation without recourse to borrower. 

The legislation also seeks to watchlist frequent loan defaulters with a view to tracking and blacklisting them.
It also provides penalties for breaches and violations of obligations as well as enhance loan recovery across banking sectors in Nigeria. 

The bill, sponsored by Niger senator, Muhammed Sani Musa passed second reading after a brief deliberation. 

Leading the debate, Mr Musa said the essence of the bill is to establish a unified scheme for a sound financial system that will facilitate and improve credit repayment culture and also streamline loan recovery. 

This, he said, is necessary because credit is seen as the bloodstream of the banking business and the situation of Nigeria today demands an injection of a healthy bank credit and recovery system that will effectively fasten the pace of the growth. 

“Howevever, every lending institution finds itself from time to time with loans of which the risk of loss is greater than anticipated. In every lending environment, there are two types of borrowers–the good and the bad. 

“Lest we forget, before the deregulation of our banking system, the ability of our banks to recover loans has been the bedrock behind the collapse of many commercial banks.

“In most economies have experienced high increased rate of unemployment as a result of such negligence of the credit system,” he explained. 

Today, the situation in Nigeria has become very serious and seemingly intractable and thereby frustrate our efforts as a nation towards private driven economy as well as economic diversification and growth, he said. 

The lawmaker also noted that there is a court judgement that give banks the right to take back their money from defaulters from any of the banks where they have deposits.

The bill was referred to the Senate committee on Banking, Finance and other financial institutions for further legislative work. The committee is to report back in four weeks. 

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Legislature

NASS postpones resumption over APC membership registration.

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NASS postpones resumption over APC membership registration.

The administrative management of the national assembly has announced the postponement of resumption of members of the two chambers that was billed for Tuesday 26th January 2021 till the 9th of February, 2021.

This was contained in a statement that was signed by the clerk of the national Assembly Ojo Olatunde Amos.
The national Assembly had vacated for the Yuletide/new year breake on the 21st of December to reconvene on the 26th of January, 2021.
The statement indicated that the postponement is to enable APC caucus in the national assembly take active part in the membership registration and revalidation that will commence on Monday, 25th January, 2021.
The statement reads, “This is to inform all distinguished senators and Honorable members of the national Assembly that the resumption of plenary earlier scheduled for Tuesday, 26th January, 2021is hereby rescheduled for Tuesday 9th, February, 2021.
“This postponement is to enable members of the All Progressives Congress (APC) participate in the registration and revalidation of its membership, scheduled to commence on Monday, 25th, January  2021.
The clerck expressed regrets for any inconviniences that change in date may have caused all and sundry.





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Legislature

Niger Assembly declares support for Medical Varsity Bill

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Niger Assembly declares support for Medical Varsity Bill

Ahead of the public hearing at the House of Representatives, the Niger State House of Assembly on Thursday threw its weight behind the Bill for an Act to Establish Federal University of Medicine and Health Sciences in Bida, Niger State.

The Speaker, Niger State House of Assembly, Hon. Barrister Abdullahi Bawa Wuse gave the indicatio in Minna when the State Lawmakers hosted the Member representing Bida/Gbako/Katcha Federal Constituency, Hon. Saidu Musa Abdullahi SMA (Gorozon Nupe) who was on a visit in furtherance of stakeholders’ engagement on the Bill.

The Speaker said he was “delighted with the Lawmaker for understanding the need for institutional collaborations which is healthy to the progress of the State”.

According to Bawa Wuse “we will go out as a State to get this University established here. Having University to run Medicine and related Courses in Niger State is long overdue”.

Addressing the State House of Assembly, Hon. Saidu said “the University. When established, will provide more opportunities and fair chance for Nigerians seeking to pursue a career in the medical sciences and most importantly address medical workforce shortfall in the country. It is a pan Nigerian project but more of Niger State”.

“Today, the number of Nigerian Students seeking admission to study medicine in particular and health sciences in general is on the increase but unfortunately, a significant percentage of them usually fail in getting admission not because they do not possess the required qualification but because those tertiary institutions do not have the capacity to accommodate them.

“It may interest you to know that Niger State is the only State in the North-Central Nigeria that has no degree awarding institutions in medicine and health sciences neither at Private nor public arrangement levels”.

Members from Gbako, Bida II, Suleja, Agwara and Chanchaga, all contributed brilliantly in support of the Bill.

After various contributions from the Lawmakers in favour of the Bill, the Speaker, Hon. Abdullahi Bawa Wuse constituted a Committee Chaired by the Member representing Agwara with a clear time of reference to prepare a position paper that will be presented at the Public Hearing in support of the bill.

The Speaker also said the 27 House of Assembly Members of Niger State will attend the Public Hearing.

Member representing Chanchaga, Hon. Ahmed Marafa Guni pledged to foot the bill for the transportation of all the Members of the State Assembly to and from the Public Hearing.

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Legislature

House of reps denies tendering apology to presidency for carrying out its constitutional mandate

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House of reps denies tendering apology to presidency for carrying out its constitutional mandate

From Doris Ferdinand

The House of Representatives has debunked news making the round that it apologised to the Presidency for exercising its constitutional mandate.
This was contained in a statement that was issued by the Spokesperson of the House of Representatives
Representative  Benjamin Kalu.
He said the news in a few sections of the media that the House apologized to the Presidency over the resolution of the House was not true.
He said the issue arose from the motion sponsored by members from Borno State, requesting for the invitation of the President to brief the nation on the state of insecurity in the country adding that the President never asked for any apology.

“The President or the Presidency as the case may be, never sought for an apology from the House of Representatives for carrying out her constitutional responsibility to the Nigerian electorate. “Where then did the media get the report that the House as an institution apologized to anyone? Media professionals are advised to uphold the ethics of their profession.

“For the avoidance of doubt, the House never apologized to anyone for exercising her constitutional mandate and the 9th Assembly of the House of Representatives under the leadership of Speaker Femi Gbajabiamila will not do anything to desecrate or destroy the critical institution of democracy – the Legislature.
“We strongly believe that President Muhammadu Buhari subscribes to these democratic ethos and ideals as well.”

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