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Notify Customers Before Debt Recovery Moves, CBN Tells Banks

“Customers should be given the option of a private sale before foreclosure, which must be exercised within 30 days unless the customer has waived this right,”

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The Central Bank of Nigeria has instructed regulated entities to provide customers with notices of outstanding obligations before beginning debt collection.

This is to ensure that the debt recovery process is transparent, courteous, and fair.

CBN stated this in a document released on Thursday on its website titled “Revised Consumer Protection Regulations.”

It noted that the essence of the document is to ensure financial institutions follow consumer protection principles.

The regulations outline consumer rights and aim for better outcomes and access to financial services.

The document states that foreclosures should only be initiated as a last resort after other recovery options have failed.

Foreclosure is the legal process in which the ownership shifts to the bank or lender if the debtor fails to pay the loan.

“Customers should be given the option of a private sale before foreclosure, which must be exercised within 30 days unless the customer has waived this right,” the document stated.

The apex bank further mandated that financial service providers must apply the net proceeds from foreclosures to the loan account and inform customers of the remaining balance.

The CBN added that banks must give customers a report on the collateral sale, stating process, expenses, and net proceeds noting that banks are responsible for the actions of debt collection agents.

The document outlines restrictions for loan providers in terms of contacting individuals related to a customer.

It stated, “Providers are not allowed to contact friends, employers, relatives, or neighbors for any information other than employment status, telephone numbers, or address. The only exception is if the person has guaranteed the loan or has given consent to be contacted.”

Additionally, banks must safeguard customers’ assets and are responsible for losses due to control breaches; test products with consumers and modify to reduce fraud/errors and implement measures and authentication for transactions.

FSPs are also mandated to install automated transaction monitoring, alert functions, and behavioural monitoring to detect and prevent fraud; customers must also be educated on fraud threats or scams.

The document added that the providers must communicate procedures for reporting suspicious, unauthorised, fraudulent, lost, or stolen payment instruments and/or authentication information to consumers periodically.

The apex bank requires financial institutions to offer secure and user-friendly interfaces for digital financial services to prevent errors and double transactions.

The CBN added that banks must protect consumer data privacy and confidentiality from unauthorised access and be responsible for any acts or omissions in this regard.

The providers are required to incorporate personal data protection into their product or system designs; they must obtain written consent from consumers to collect and process their personal data for specific purposes, and allow them to withdraw their consent at any time and are prohibited from sharing consumers’ personal data with third parties without their express consent, and must provide clear and simple “Opt-in” and “Opt-Out” options for data sharing.

“Safeguarding the interests and ensuring greater protection of consumers in the evolving financial services landscape necessitated the review of the 2019 Consumer Protection Regulations,” it added.

 

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Makinde Only In PDP Because He’s Not Seeking Re-election – Otitoju

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Babajide Kolade-Otitoju, the Director of News at TVC News, recently stated that Oyo State Governor Seyi Makinde would likely have defected from the People’s Democratic Party (PDP) if he was still serving his first term.

Otitoju stated this on Friday on TVC’s ‘Breakfast Show’.

He described the National Convention of the Peoples Democratic Party, PDP, in Ibadan last November as a mere waste of time.

“People must show good judgment at a critical phase. What was the point of having that convention? Two courts told you not to go ahead but you went ahead.

“I may not be a fan of former Senate President Bukola Saraki but if he says something that makes sense, I will be the first to admit it. He made sense when he said let’s go for caretaker. What’s the point of not listening to him?

“Later you will be shouting that the ruling party is behind your crisis, meanwhile you are the architect of your own misfortunes. You created this problem.

“If Makinde were in his first term, he would have fled like the dancing governor because his second term would have been in danger,” Otitoju said.

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Terror Surge: Tinubu Demands Results from Security Chiefs

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President Bola Tinubu met with security chiefs, including Tunji Disu, the inspector-general of police (IGP) in a closed-door session on Thursday to address a series of “rising terror attacks” across the country.

The meeting followed an escalation in violence, including recent deadly raids in Benue, Plateau, and Borno states.

The nearly two-hour meeting, held at the State House in Abuja, began in the afternoon after the security chiefs arrived discreetly and ended around 5:10 p.m.

Those in attendance included Christopher Musa, minister of defence; Nuhu Ribadu, national security adviser (NSA); Adeola Ajayi, the director-general of the Department of State Services (DSS); and Olufemi Oluyede, chief of defence staff (CDS).

Others were Waidi Shaibu, the chief of army staff; Kelvin Aneke, chief of air staff; and Idi Abbas, chief of naval staff.

As of the time of filing this report, details of the meeting had yet to be issued by the presidency.

However, there are indications that the sit-down may centre around the rising terror attacks and intensified assaults on military outposts across Nigeria, particularly in the north-east, which culminated in the recent killing of several high-ranking officers.

On Monday, a commanding officer of the Nigerian Army was killed following an attack by suspected fighters of the Islamic State West Africa Province (ISWAP) on a military base in Kukawa, Borno state.

The attack came about a week after suspected Boko Haram and ISWAP fighters attempted to attack military positions in Ngoshe, Gwoza LGA of Borno.

On Tuesday, Nigerian troops repelled an early-morning attack by suspected ISWAP fighters on a military base in Doron Baga, Kukawa LGA of the state.

Speaking during an interfaith breaking of the fast with members of the Nigerian Armed Forces at the presidential villa in Abuja last Friday, Tinubu said the country would “ultimately prevail against all forms” of insecurity.

The president said the efforts of the security forces had continued to weaken terrorist groups and bandits operating in different parts of the country.

He assured the armed forces of continued investment in modern equipment, intelligence, and logistics to strengthen their operational effectiveness.

 

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2027 Shakeup: 12 Lawmakers Defect To APC, ADC

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In a major political shake-up on Thursday,12 members of the House of Representatives formally defected from their various political parties to the All Progressives Congress (APC) and the African Democratic Congress (ADC).

The Deputy Speaker, Benjamin Kalu, announced the defections during a plenary session, citing internal party crises and leadership disputes as the primary reasons for the lawmakers’ exit.

Of the 12 lawmakers who defected, six left the Peoples Democratic Party for the APC. Five members abandoned the Labour Party and the PDP for the ADC, while one member moved from the Young Progressives Party to the ADC.

The development has heightened concerns about growing instability within political parties ahead of the 2027 general elections.

Those who defected from the PDP to the APC are James Barka (Adamawa), Kwamoti Bitrus Laori (Adamawa), Zakaria Nyampa (Adamawa), Kobis Thimnu (Adamawa), Midala Balami (Borno), and Mohammed Bargaja (Sokoto).

Lawmakers who defected to the ADC include Afam Victor Ogene (Anambra), Peter Aniekwe (Anambra), Lilian Orogbu (Anambra), Jessey Onakalusi (Lagos), and Murphy Osaro Omoruyi (Edo).

The Deputy Speaker of the House, Benjamin Kalu, who presided over plenary, disclosed that some other members had also written to the leadership of the House notifying it of their intention to leave their current parties.

He, however, said the letters and the destination parties of the lawmakers would not be disclosed in their absence.

While announcing the names of the defectors, Kalu said the reasons given by the lawmakers were similar to those previously cited by others who had defected. He added that the House would not read the letters during the session in order to save time.

According to him, the letters would only be read when the concerned lawmakers are present on the floor of the House.

During Wednesday’s plenary, Garba Inuwa and Abdullahi El-Rasheed from Gombe, as well as Mohammed Audu (Taraba) and Joshua Obika (FCT), defected to the APC, while Adewale Adebayo (Osun) left the PDP for the Accord Party.

 

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