I got this dm from one of my followers abt challenges in servicing a loan with a MFB. I believe it echos the reality of many businesses that have taken loans and have been repaying the loans but with the lock-down and inability to generate cashflow, they're suddenly unable to pay 
SME's like these need a breathing space. They need a moratorium from payment of Principal & Interest (at the least the Principal) covering the duration of the lock-down. Is this novel? No. The @cenbank did that in March when it gave a 1 year moratorium on its intervention funds.
The reason the CBN can do this is simple. Intervention Funds comes from the CBN. It can control the tenor and
interest rate. But for private loans provided by DMB and MFB, the situation is different. The expectation is that these private institutions should follow the CBN's lead
interest rate. But for private loans provided by DMB and MFB, the situation is different. The expectation is that these private institutions should follow the CBN's lead
So what can SME's who are in this position do? I have the following suggestions:
1. Write to your bank and officially request for a moratorium on your principal and interest payment to cover for the lock-down. You have a better chance of paying debt when you are alive not dead.
1. Write to your bank and officially request for a moratorium on your principal and interest payment to cover for the lock-down. You have a better chance of paying debt when you are alive not dead.
2. Consumers should activate the CBN Consumer Protection Protocols. The protocols prescribe guidelines for ethical debt collection practices and also encouraged banks to adopt fair and ethical debt recovery practices. Ensure send a copy of your letter to cpd@cbn.gov.ng
Please note that the banks are not obliged to accept your request but the key is to create a critical mass. If a substantial number of SME's write to their banks and the CBN, it will create a lot of attention to cause the CBN to exert its influence through the banker's committee.
Like I like to say, these are unusual times and we need to adopt unusual solutions. I do not see why any financial institutions will have a problem granting a short moratorium for it customers at least to cover for the period of the lock-down.
