CBN activates automatic debit orders on Anchor Borrowers Programme debtors, others in banks

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, revealed that over N10 trillion has been loaned to customers under various intervention schemes.

CBN data reveals that between September and October 2022, the apex bank disbursed about N41.02 billion to several agricultural projects under the Anchor Borrowers’ Programme (ABP).

CBN disburses over N10 trillion customers in various sectors

The total disbursement under the ABP scheme amounts to N1.07 trillion to about 4.6 million smallholder farmers growing 21 commodities nationwide.

CBN also disbursed N300 million to fund large-scale agricultural projects under the Commercial Credit (CACs), amounting to N745.31 billion paid under the scheme.

The bank released N48.30 billion under the N1 trillion Real Sector Facility to seven new real sector initiatives in agriculture, manufacturing, and services, bringing the total disbursement under the facility to N2.15 trillion to 437 projects in Nigeria.

The Nation reports that beneficiaries of the 100 for 1oo on production and productivity scheme received about N20.78 billion under various sectors spanning healthcare, manufacturing, and services, amounting to N114.17 billion disbursed to approximately 71 projects across Nigeria.

The apex bank also disbursed N4 billion under the Intervention Facility for Natural Gas Expansion Programme to boost the adoption of compressed natural gas for transport and liquified petroleum gas for cooking.

The CBN has adjusted the Global Standing Instruction (GSI), a policy allowing financial institutions to debit bank accounts of loan defaulters to settle debts.

CBN mandates banks to begin automatic debit of chronic debtors

According to a circular titled ‘Re: Global Standing Instruction (GSI), Individuals’, CBN said the rate of recovery attempts through the GSI platform will continue unrestricted.

The circular said: “Consequently, please be informed that the frequency of recovery attempts via the GSI platform has been amended from a specific number to continuous and unrestricted.”

“In other words, the GSI automated loan recovery feature applicable to all loans in the industry will henceforth remain perpetually in place throughout the life of the loan and until the loan is fully repaid.”