Regulatory Alerts2012-09-19 | FPR/DIR/CIR/GEN/01/33Implementation of Sustainable Banking Principles by Banks, Discount Houses and Development Finance Institutions in Nigeria
The Central Bank of Nigeria has issued a circular prohibiting new credit facilities for debtors transferred to the Asset Management Corporation of Nigeria (AMCON) who have not repaid their loans. This applies to individuals, organizations, and companies with outstanding loan values of N5 billion or above purchased by AMCON. Deposit Money Banks are restricted from approving any new credit facilities for these affected borrowers until they fully repay the agreed indebtedness to AMCON. Non-compliant banks will face a 100% provision of outstanding principal and interest, alongside potential additional regulatory penalties.
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