Affiliates of the Nigeria Labour Congress (NLC), employee Associations, co-operative societies and other labour-related groups are among the delinquent bank debtors contained in the list of account holders associated with bad and doubtful debts (BDDs) of Nigeria’s money deposit banks (MDBs). Data pieced from the bad debtors’ list published in the banks last week showed that labour-related groups, made up of affiliates of the NLC, employers and branches of organisations’ as well as employees’ co-operative societies owed the banks 5,939,057,793.29 as at the date of publication last week.
The bank debtors which acquired the bank facilities at different dates received them under various categories such as Term Loan, Overdraft, Loan and On-lending. Of the 10 banks which reported labour-related toxic debts, Guarantee Bank is owned the highest totaling 1,552,205,286.42, followed by First Bank owed 1,374,572,024.16.
The labour-related groups reported to be owing the banks include various branches of the Nigeria Union of Local Govt. Employees (NULGE), Nigeria Union of Teachers (NUT), Medical & Health Workers Union of Nigeria (MHWUN), National Union of Road Transport Workers (NURTW), and Association of Senior Civil Servants of Nigeria (ASCSN).
Others are Amalgamated Union of Public Corporations, Civil Service (AUPCCS), Non-Academic Staff Union of Universities (NASU), Academic Staff Union of Polytechnics and Colleges of Education, Judiciary Staff Union of Nigeria (JUSU) and various Multipurpose Co-operative Welfare Associations.
Union Bank is owed N907,994,406.52, Stanbic IBTC N454,810,657.12 Skye Bank 418,307,443.39 and Diamond Bank 346,993,244.0. The report also shows the following debt figures: Sterling Bank 278,061,173.07, Enterprise Bank 268,204,842.20, , FCMB 257,994,523.26 and Unity Bank is owed N79,914,193.15. Boniface Okezie, President of Progressive Shareholders Association condemned the trend which he described as a reckless way of using shareholders’ fund.