Chronic Debtors Owe First Bank, Access Bank, Others N71.5bn

The Central Bank of Nigeria (CBN), initiated name and shame campaign of banks’ delinquent debtors gained further momentum on Wednesday as First Bank, Access Bank, First City Monument Bank Limited (FCMB) and Ecobank Nigeria published their lists, according to the publications by these financial institutions, these chronic debtors owe a total sum of N71.5bn.

The CBN had on April 22, 2015 directed the banks, discount houses and the Asset Management Corporation of Nigeria to publish the list of their delinquent debtors from August 1. They are to publish the names in at least three national newspapers on a quarterly basis.

In line with this directive, the banks gave the chronic debtors a three-month grace period, which expired on July 31. Delinquent debtors of First Bank Nigeria Limited owe a total of N45 billion, Access Bank Plc put its total indebtedness at N3.715 billion, FCMB is owed N17.1bn and Ecobank is also owed a total sum of N5.4bn.

Shield Petroluem Limited Top the First Bank Nigeria’s list with N6.9 billion. It was closely followed by Ajaokuta Steel Company Limited with N6.1 billion, Starcomms with N5.5 billion, C & M Limited with N2.3 billion, Sirius Energy Resources Limited with N2.2 billion, Summit Investment and Property Limited with N1.8 billion and Fargo Petroluem and Gas Limited with N1.7 billion.

Some others are BGL Securities which is owing First Bank N1.6 billion, Grant Properties with N1.5 billion, Astera Engineering Limited with N1.4 billion, Nigeria Agip Oil Company Port Harcourt Staff Cooperatives with N967 million, Sanshek Nigeria Limited with N698 million, WhitePlains British Schools Limited with N682 million, Calat Services Limited with N674 million and Discover and Company Limited with N531 million.

On the other hand Access Bank published the names of 11 firms and individuals as well as the directors of the affected companies. Top on Access Bank’s list of delinquent debtors was Boika Ventures Limited with outstanding debt of N1.2 billion. It was closely followed by Mclatek Nigeria Limited with N949 million, LOC Metals and Minerals Limited with N558 million, Zemeer Engineering Nigeria Limited with N260 million, MIN Services Limited with N167 million.

Rowland and Irene Trading Company with N141 million and Idris Idi Lawal also owing the bank N143 million. In addition, Terminal Zero Development Limited also featured on the list with outstanding debt of N128 million, Stock Investment Securities Limited with N108 million, Ilorin West Local Government Education with N55 million and Derukas International Limited with N56 million.

The FCMB list has the names of popular companies, whose directors are prominent Nigerians appearing among the high non-performing loan defaulters with MRS Oil & Gas, a major player in the downstream sector of the oil and gas industry, topping the list of delinquent debtors with a N6.2bn non-performing loan, White Diamond Property Development Limited, a firm owned by a business mogul, Rabiu Isiyaku Rabiu, is the second on the list with a debt of N616m.

Two companies belonging to an ex-Minister of Sports, Saidu Samaila Sambawa, occupied the fourth and sixth numbers on the FCMB list, the firms, Sigma Engineering & Construction Limited and Sambawa Farms have a combined delinquent facility of N1.04bn, Niger Global Engineering & Technology Company Limited, a firm belonging to Senator Hope Uzodinma, a former Chairman of the Senate Committee on Aviation, was number eight on the FCMB debtors’ list, with N338.85m.

The name of the same company appears on the Ecobank Nigeria’s delinquent debtors’ list, with a bad loan of N94.3m recorded against it, Global Energy Resources, which according to FCMB, belongs to Mr. Olatunde Ayeni, who is the Chairman of Skye Bank Plc, owes N175m, Suzzatej Nigeria Limited, whose directors are listed as Prince Olanrewaju Adeyemi Tejuosho, Princess Mojisola Tejuosho, children of the Osile Oke Ona, Egba, Oba Adedapo Tejuosho, and two others, is said to owe the bank N84m

In total, the 86 names on the list owe FCMB a combined sum of N17.1bn.

Ecobank Nigeria, which has 73 names on its list, is being owed a total sum of N5.4bn by the delinquent debtors of which Plasto Crown Nigeria Limited, a firm belonging to a former Minister of Environment and Housing, Lady Helen Esuene, and other people, is said to owe Ecobank N11.1m.

This means that the debtors owe FCMB, Ecobank First Bank and Access Bank a total sum of N71.5bn.

Banks, which are expected to publish the lists of their delinquent debtors later this week or before the end of the month, are Standard Chartered Bank, Keystone Bank, Citibank, Wema Bank Plc and United Bank for Africa Plc.

It had been estimated that three per cent of total industry credit of about N13 trillion was bad debt.

The CBN Director of Banking Supervision, Mrs. Tokunbo Martins, had said: “The total credit is about N13 trillion. About three per cent of that is non-performing and August 1, 2015, is the deadline for publishing the list of debtors.”