Debtors Africa – an independent searchable database of recalcitrant and delinquent debtors in Africa was launched into the market today, in addition a Debtors Report – a comprehensive analysis of the Debt/Non-Performing Loans Situation in the Nigerian Banking Industry was also presented for information.
The report which was done in partnership with Proshare represents a culmination of a detailed review of the credit experiences of local Nigerian banks in the last two decades and reveals the challenges of a local lending cycle that has seen lenders become victims of the tyranny of bad and delinquent debtors.
The report makes a case for a new approach to the lending cycle to ensure that integrity, professionalism and evidence-based best lending practices are strictly followed to guarantee the sustainability of the financial system and the prosperity of the larger economy.
Key highlights of the report include:
- The Industry & its Debt Position
- Definition of a delinquent debtor and how this has changed over the years including how banks end up with bad debtors
- The Sectors & Regions affected & Impact on GDP
- Provisions of the law as regards credit collection and recovery in Nigeria
- The AMCON approach, lessons learnt, and the way for banks to adopt a revised credit recovery framework
- Case Study of approaches adopted in recovering debt; and
- Fresh methods a New Approach offers to banks troubled by delinquent debts