Loans ‘destabilising’ Nigeria banks

ABUJA: The Nigeria Deposit Insurance Corporation (NDIC), an independent government agency, is concerned about an “increasing wave” of non-performing insider loans on the country’s banks.

Managing director Alhaji Ibrahim was concerned about the consequences of the loans on the stability of the nation’s banking system. The loans are paid by banks to their directors and shareholders.

“He called for strict compliance with the existing code of conduct and a review of the existing laws and regulations to provide stiffer penalties for directors who take advantage of their positions and failed to pay back their loans”, the NDIC said.