On the 14th of December 2018, reports that CBN, the Nations apex bank has plans to track bad debtors and make them pay was heard.
On the 26th of Aug 2019, CBN and other Financial Institutions in the country reached a conclusion to clamp down people with a bad credit score.
Do you remember BVN?
Here’s a quick reminder: The Bank Verification Number commonly called BVN is a biometric identification system implemented by the Central Bank of Nigeria to curb or reduce illegal banking transactions in Nigeria. It is a modern security measure in line with the Central Bank of Nigeria Act 1958 to reduce fraud in the banking system.
Henceforth before you borrow from any lending institutions you would be made to sign an agreement
that if you fail to pay, the bank would have a right to access your other accounts.
We all know that through your Bank Verification Number (BVN) lenders can easily access any other
account(s) you might have in any other bank.
With this, the era of people that borrow with no intention of paying back will soon over. Another
condition for borrowers set during this meeting is that banks will demand BVN, Tax Identification
Number (TIN) among other documents.
This is good as the activities of these bad borrowers have made IT difficult for genuine people especially
SMEs to borrow from banks.
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