By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s rescued lender, Keystone Bank Limited is being owed N13.65 billion by 126 delinquent debtors, according to the bank’s schedule of delinquent debtors published on its official website.
The debts ranges from overdraft to import finance facility (IFF), mortgage, term loan, lease finance, local purchase order (LPO) finance, contract finance, shares purchase and invoice discounting facilities.
The bank listed 126 defaulters in its bad book, amounting to about N13.65 billion, with three of the highest debtors- Primewealth Capital Limited owing over N1.2 billion, followed by Wheatland Bakery Limited N854.27 million, Mr & Mrs. Eboh .A. Augustine owing N488.92 billion, and Agbor Njok and Company with N413.81 million.
Other top debtors to Keystone Bank owing over N200 million include St Akins Limited N278.09 million, Angels Tech Limited N244.11 million, while Mbaka Chioma, Jukok International Limited and Kenevic Investment Nigeria Limited owe N223.14 million, N217.12 million and N211.86 million respectively.
Late April, the Central Bank of Nigeria (CBN) ordered banks to publish lists of individuals and companies with non-performing loans to limit a rise in bad debts as lenders struggle with weakening naira and sliding oil prices.
The Central Bank of Nigeria has “observed the rising trend of non-performing loans,” Tokunbo Martins, director of banking supervision, said in a circular posted on the Abuja-based regulator’s website. The new rule, effective from May 1, is to “ensure that the industry NPL ratio does not exceed the prudential limit of 5 percent, and to improve the credit culture in the banking industry.”
The CBN’s circular had said bad debtors will get three (3) months to start repayments. “Borrowers whose loans remain non-performing after that period will be banned from Nigeria’s foreign-exchange and government bond markets,” Martins said.
The lists of delinquent debtors include the persons, entities, directors, subsidiaries and other related parties.
Early August, 10 banks published the list of their respective debtors, which accounted for less than N165 billion of the total bad debts put at about N546 billion as at March 2015.
As at the time of filing in this report, InvestAdvocate could not ascertain the current status of Keystone’s delinquent debtors; but relied on what was published on its official website.
Efforts made to reach Bola Osotule, Head, Brand Management, Marketing & Corporate Communications of the bank was not successful as calls to her mobile line remained unanswered and a text message sent to her phone also was not replied.
