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.