Loan Recovery (Regulations) Bill, 2020 (SB.492)

The bill seeks to allow creditor banks to track the account(s) of loan defaulters through their Bank Verification Number (BVN) and recover past and due obligation without recourse to the borrower. The bill empowers banks to deduct money from the account of loan defaulters.

The bill also includes provisions for creditor banks to watch frequent loan defaulters with a view to tracking and blacklisting them and provides penalties for breaches and violations of obligations towards enhancing loan recovery across the banking sector in Nigeria.

The Bill went through the Second reading and was referred to the Committees on Banking, Insurance, and other Financial Institutions.