CBN alerts on fraudulent loan schemes – TheNigerialawyer

The Central Bank of Nigeria (CBN) on Monday warned loan seekers
and owners of small-scale businesses to beware of fraudulent loan
offers purportedly by the Federal Government.

The CBN spokesperson, Isaac Okorafor, said in a statement that
the masterminds of the fraud ask their potential victims to apply
for loans provided by the federal government through an e-mail
address.

The CBN statement read:

“The attention of the Central Bank of Nigeria (CBN) has been
drawn to fraudulent messages in the social media circles requesting
unsuspecting loan seekers and owners of small-scale businesses to
apply for loans provided by the Federal Government through an
e-mail address ([email protected]^[1]) purportedly being
handled by the Central Bank of Nigeria (CBN).

“While the CBN, indeed, has several development finance
intervention programmes from which different categories of
businesses have benefitted (and still benefit), the Bank DOES NOT
do so through direct interaction with prospective applicants.

“For the avoidance of doubt, there are clearly spelt out
procedures for accessing CBN intervention funds, which are
disbursed through Participating Financial Institutions (PFIs), such
as Deposit Money Banks (DMBs), Development Finance Institutions
(DFIs) and Microfinance Banks (MFBs).

“Members of the public, particularly youth and owners of
small-scale businesses are therefore advised to disregard any
message requesting them to send their personal details, including
mobile phone numbers, to emails such as [email protected]^[2]
or any other one that may be contrived. These messages are fake and
anyone who enters into correspondence with them does so at his or
her own risk.

Meanwhile, an end may have finally come to predatory borrowers
in the nation’s banking sector as the Bankers’ Committee has given
its nod to the confiscation of debtors’ deposits in other banks to
offset their obligations to lenders.

This was the outcome of the 346th meeting of the Committee
Monday, in Lagos, which reiterated its concern on the low level of
credit in the banking industry and the urgent need to expand loan
facilities to Small and Medium Enterprises (SMEs), retail and
mortgage sectors with a view to growing the economy.

Addressing the media at the end of the meeting, Deputy Governor
in charge of Financial System Stability (FSS), Mrs. Aishah Ahmad,
in company of the Director of Banking Supervision, Alhaji Ahmed
Abdullahi; the Managing Directors of Guaranty Trust Bank, Access
Bank and Unity Bank; Mr. Segun Agbaje, Mr. Herbert Wigwe and Mrs.
Tomi Somefun, said the directive was aimed at encouraging banks to
increase lending to the economy.

Mrs. Ahmad said: “We are not unaware of the challenges/reasons
why credit to the economy has not been growing. Part of that was
the appetite of banks to lend especially when you have customers
that willingly refuse to pay their loans. In this respect, we have
come up with a new clause that will be included in the offer
letters that will be granted going forward.

“What are the challenges, what are the factors affecting banks’
ability or willingness to lend.

“This is going to be a credit risk protection clause that will
be in offer letters going forward. Basically, it will contain the
Bank Verification (BVN) details and Tax Identification Number (TIN)
of the customers.

It will more or less be a commitment on the part of the
customers taking the loans that by taking the loan you agree to
repay the loans; and that you also agree that should you default on
the loan, the total amount of deposits you have across the banking
industry would be applied towards repaying the loan.

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