Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Chief Ganiyu Ogunleye, has canvassed for appropriate legislation to regulate borrowing in the country.

Ogunleye, who spoke in Kaduna at the just-concluded workshop for business editor observed that in order to improve the borrowing culture, “the creditor rights mechanism requires drastic overhaul through appropriate legislation”.

He noted that procedures for taking and enforcing collaterals in the country are most inefficient. This inefficiency, he said, gives bank debtors the leeway to easily frustrate creditor banks through the abuse of judicial process.

Ogunleye explained that the corporation has in the past come across debtors who would prefer to engage solicitors that could protract cases in courts for many years rather than make efforts to resolve their debt obligation to the banks.

He warned that bank debtors with such min-set constitute a threat to the efficiency of the proposed Asset Management Company (AMC). While noting that the on-going efforts of the Economic and financial Crimes Commission (EFCC) on debt recovery is appreciated, the long term solution is for borrowers to appreciate that bank credits are largely funded from depositors’, funds. He noted that, “delinquent credits contribute to illiquidity of banks”.

Ogunleye also called on the media practitioners to help educate the banking public as banking is based on trust and confidence. He, therefore, charged them to avoid sensationalism in the daily report of the banking sector of the economy.

According to him, the recent special examination by the Central Bank of Nigeria (CBN) and NDIC has created concern for the banking public and other stakeholders. He therefore, pleaded with media practitioners not to engage in any reportage that could erode public confidence in the banking system.