Nigeria's central bank orders banks to disclose bad debtors

Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN)

Nigeria has ordered banks to publish lists of individuals and companies with non-performing loans to curb a rise in bad debt as the industry stumbles amid low oil prices.

The Central Bank of Nigeria has “observed the rising trend of non-performing loans,” Tokunbo Martins, director of banking supervision, said in a circular posted on the Abuja-based regulator’s website. The new rule, effective from May 1, is to “ensure that the industry NPL ratio does not exceed the prudential limit of 5 percent, and to improve the credit culture in the banking industry.”

Delinquent borrowers will get three months to start repayments, Martins said in the statement. Borrowers whose loans remain non-performing after that period will be banned from Nigeria’s foreign-exchange and government bond markets, she said.

Read more: Nigerian Central Bank Orders Lenders to Disclose Bad Debtors – Bloomberg Business.