Debtors Africa – an independent searchable database of recalcitrant and delinquent debtors in Africa has been launched in addition to a Debtors Report – a comprehensive analysis of the debt/Non-Performing Loans situation in the Nigerian banking industry.
The report, which was done in partnership with Proshare, represents a culmination of a detailed review of the credit experiences of local Nigerian banks in the last two decades and reveals the challenges of a local lending cycle that has seen lenders become victims of the tyranny of bad and delinquent debtors.
The report makes a case for a new approach to the lending cycle to ensure that integrity, professionalism and evidence-based best lending practices are strictly followed to guarantee the sustainability of the financial system and the prosperity of the larger economy.Key highlights of the report include the industry & its debt position; definition of a delinquent debtor and how this has changed over the years including how banks end up with bad debtors; the sectors & regions affected & impact on GDP; provisions of the law as regards credit collection and recovery in Nigeria and the AMCON approach, lessons learnt, and the way for banks to adopt a revised credit recovery framework.Others are case study of approaches adopted in recovering debt; and fresh methods, a new approach offers to banks troubled by delinquent debts.
The Debtors Africa Website is a searchable database of delinquent borrowers which enables speedy assessment of the character of a prospective customer. Of equal importance is that investors can use the database as a starting node for assessing the quality of the management of a business they intend to either partner or invest in.
The searchable database is designed to allow contributors such as banks, loan, FinTech and credit companies, cooperatives, tax authorities, private businesses, government agencies, utility providersßßß list their delinquent debtors and their indebtedness on the platform as a contributor to the platform.