The Central Bank of Nigeria, CBN has a new challenge – non-performing loans, NPLs. This means debt borrowed from the banks that are not serviced or paid back on time.

That is why the apex bank is begging everybody that has anything to with money lending or services in Nigeria to work together to ensure that NPLs is discouraged in the system.

The apex bank said it was unrelenting in its promotion and support of credit reporting for the greater good of the economy.

“We invite all stakeholders to unite on this front in terms of integration and synergy, so that everyone, including the vulnerable and excluded can all benefit from the credit extension advantage enhanced by credit bureau and credit reporting,” the Director, Banking Supervision, CBN, Mr. Abdulhaziz Barawu, said, adding that the CBN had the responsibility of ensuring the stability of the financial system.

Also Read: Canada Is Looking For A Way To End Heavy Inflow Of Nigerian Immigrants

Credit reporting in Nigeria has its antecedents in the financial crisis of the late 1980s and early 1990s, when large volumes of non-performing credits bedeviled the banking industry.

Barawu said, “Credit and liquidity work concurrently and do have an economic meaningful reciprocal relationship; you either have the funds you need, or you don’t; so, to enhance liquidity then, credit is necessary.

“However, where such cash is granted to enhance liquidity and repayment is not guaranteed or outright defaulted, liquidity is hampered and credit risk is high. The task before the CBN then was eliminating default risk associated with granting the credit.”

 Also Watch: Na my Assurance you dey call Jalopy, Nigeria bans codeine importation and more this week on Bounce