In Nigeria, the issue of loan defaulting has gained significant attention, with the government taking strong measures to address the problem. According to the Assets Management Corporation of Nigeria (AMCON), a staggering 5 trillion Naira debt is currently owed by loan defaulters in the country. Shockingly, about 67% of this massive debt is attributed to the top 20 loan defaulters, most of which are major companies.
What is a Loan Defaulter?
A loan defaulter is an individual or entity that fails to fulfill the agreed-upon obligations of a loan. Essentially, it occurs when a borrower is unable to make the required repayments according to the terms of the loan agreement. For instance, if a company or individual borrows money from a bank or lending institution but fails to make timely payments, they are considered a loan defaulter. This failure to meet financial obligations can lead to serious consequences, especially when legal authorities are involved.
The AMCON List of Loan Defaulters:
In 2019, the Assets Management Corporation of Nigeria (AMCON) published a comprehensive list of loan defaulters in Nigeria. This list shed light on the top 20 culprits responsible for breaching loan agreements worth trillions of Naira. Some of the prominent defaulters and their owed amounts include:
- Capital Oil & Gas Industries Limited – Ifeanyi Ubah: ₦115,952,152,265.92
- NICON Investments Limited – Jimoh Ibrahim: ₦59,544,633,980.31
- Bi-Courtney Limited (MMA2) – Wale Babalakin (SAN): ₦40,798,422,374.02
- Josepdam & Sons Limited – Late Mrs. Josephine Damilola Kuteyi, Saheed Kuteyi, Ganiyu Kuteyi: ₦39,056,674,951.55
- Tinapa Business Resort Cross River State Government: ₦36,006,319,844.68
- Home Trust Savings – Chukwukadibia Ajaegbu, Funmu Ademosun: ₦30,626,243,344.71
- Geometric Power Limited
- Roygate Properties Limited – Wale Babalakin (SAN), Agumadu John, Alarape Olabode, Okhaleke Ndudi: ₦28,137,176,532.32
- Shell Development Petroleum Company – West Multipurpose Co-operative Society Limited (SPDC) – Shell Staff represented by Ikponmwosa Ogiemuda: ₦26,474,541,188.17
- Anyiam Osigwe Limited – Anyiam Osigwe, Dorothy Chinyere: ₦20,523,322,350.29
Laws and Consequences:
Loan defaulting is a serious offense in Nigeria, and the government has directed its key bodies including the Economic and Financial Crimes Commission (EFCC), Nigerian Financial Intelligence Unit (NFIU), Independent Corrupt Practices Commission (ICPC), and the Ministry of Justice to take action against defaulters. The consequences of loan defaulting can include legal actions, garnishing wages, asset seizure, and damage to one’s credit score.
Conclusion:
The issue of loan defaulting in Nigeria is a pressing concern, with billions of Naira at stake. The AMCON list of top 20 loan defaulters serves as a stark reminder of the financial challenges faced by the country. As the government and relevant authorities take stringent actions to address the problem, it is essential for borrowers to understand their responsibilities and obligations when taking out loans to prevent falling into the cycle of loan defaulting.