House Probes Banks For Demanding Collateral In Choice Areas


The House of Representatives has mandated its Committee on Banking and Currency to investigate the alleged discriminatory policy of certain commercial banks accepting selected real estates in cities as collateral.

The resolution was sequel to a motion by Rep. Udo Ibeji (PDP-Abia), which was unanimously adopted without debate in Abuja on Thursday.

The motion is entitled: “Need to investigate the discriminatory policy of certain commercial banks on Real Estate/Assets Located in Selected Cities/ Towns and Locations as Acceptable Collateral’’.

Moving the motion, Ibeji said that by virtues of CBN policy guidelines, all commercial banks had branches rendering banking services in major towns and state capitals in the country.

He said that Nigerians in each of these locations open and operate all types of accounts with the commercial banks.

Ibeji said that most times, there was need for businessmen to apply to these banks for loans and other facilities to enhance their trade and business within such localities.

He expressed concern that some of the commercial banks were operating a policy of insisting that immovable assets required as collateral for banking facility must be located in Lagos, Port Harcourt or Abuja.

The lawmaker urged the house to adopt the motion to forestall continued negative impact the policy had on trade and business and on the general economy of the country.

The motion was not opposed and it was referred to the relevant committees for more action.

The committees are expected to report to the house within four weeks.

Meanwhile, the house had called on ASUU and the Federal Government to find ways to resolve their current lingering crisis.

The Speaker, Alhaji Aminu Tambuwal, made the call after the Chairman, Committee on Education, Rep. Aminu Sulieman (PDP-Kano), had briefed the house on the crisis.

Tambuwal also urged both parties to put aside whatever sentiment each had with a view of settling the crisis.

“Once again, I am calling on both sides (ASUU and Federal Government), particularly the executive arm of government to please quickly bring this matter to an end,’’ he said.

He said that the house was ready and willing to assist if need be to enact any legislation that would assist in resolving the matter.

“Please, we need our children to be in schools, once again, I implore you,’’ the speaker said.