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You are here:Home>>Strategic Research & Analysis>>CBN list of bad debtors restricted from bank loans
Sunday, 23 September 2012 05:18

CBN list of bad debtors restricted from bank loans

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Otedola, Dantata, Nnaji, Ifeanyi Uba blacklisted by CBN Otedola, Dantata, Nnaji, Ifeanyi Uba blacklisted by CBN Photo

Central Bank Of Nigeria (CBN) authored  a list of  companies that are barred from getting bank loans because they “failed to repay their loans to banks and had those loans subsequently transferred to  Asset Management Corporation of Nigeria (AMCON).”


"A circular released by the Central Bank of Nigeria has listed prominent Nigerians and their companies as chronic debtors who have refused to pay up debts they owe to banks. The circular which listed 113 companies and 419 directors/shareholders directed banks not to extend further credit facilities to the defaulters. Prominent among the blacklisted names and companies are Femi Otedola, Alhaji Sayyu Dantata, Sir Johnson Arumemi-Ikhide, former Power Minister, Prof. Bart Nnaji, Mrs Elizabeth Ebi and Dr. Wale Babalakin. The debtors have refused to pay back their loans despite the purchase of the debts at an agreed price by the Asset Management Corporation of Nigeria (AMCON)." -Dr Austin Ejaife Blog


“Deposit Money Banks are prohibited from approving or disbursing any new credit facilities to all persons and organisations on this list with effect of the date of this circular, until full liquidation of agreed indebtedness to  Asset Management Corporation of Nigeria (AMCON),” according to  the circular signed by Central Bank Of Nigeria (CBN)’s Director, Banking Supervision, Mrs. A. O. Martins.


The CBN circular titled 'Prohibition of New Credit Facilities To Debtors of the Asset Management Corporation of Nigeria (AMCON), also stated that “In the initial instance, this restrictions shall apply to individuals, organisations, companies as well as principal shareholders and directors of companies where the outstanding value of loans purchased by AMCON amounted to N5 billion or above as at the day of purchase, without regard to the actual amount paid by AMCON.”


The breakdown of the bad debts:

The $1.2 billion(N192 billion) is owed by Otedola’s Zenon Petroleum & Gas Ltd

MRS Holdings Limited, owned by Dantata (N119.98bn);

Seawolf Limited (N98.32bn);

Arik Air Limited, owned by Arumemi-Ikhide (N85.481bn);

NITEL Plc/M-Tel (N71.547bn);

Capital Oil and Gas Limited, owned by Ifeanyi Ubah (N48.014 billion).

Falcon Securities (N162.9bn);

Rockson Engineering Limited, also owned by Arumemi-Ikhide (N60.475bn);

BGL Securities (N6.44bn); Rahamaniyya Oil & Gas Limited (N46.38bn);

Bi-Courtney Limited (N20.214bn);

Geometrics Engineering, owned by Bart Nnaji (N19.76bn);

Aero Contractors Company, belonging to the family of Olorogun Michael Ibru (N32.579bn);

Tinapa Business Resort (N18.509bn).

Nestoil Limited, owned by Ernest Azudialu (N13.506bn);

Dorman Long Engineering (N9.667bn); Ascott Offshore Nig. Ltd, owned by ex-banker,

Henry Imasekha and the Berkley Group (N64.728bn);

Gitto Constuzioni owned by the late Italian road builder(N11.838bn);

Dansa Foods (N14.880bn) whose directorsaer Sani and Abdul Dangote, brothers of billionaire business magnate, Alhaji Aliko Dangote.

Commercial banks were also prohibited from granting further credit to Cross River State and Zamfara State owing to the refusal of the Tinapa Business Resort and the accountant general of the Zanfara State Ministry of Finance to pay back their respective loans.

Sources: PM News,



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