On 26 August 2019, the Central Bank of Nigeria (CBN) released a circular titled: New Offer Letter Clause for Credit Facilities. The circular gives banks, who have extended facilities to customers, the right to access and utilise deposits of the non-performing loan’s customer across the banking industry in the event of a payment default. In this article associate, Olubusola Oyeyosola Diya, highlights the circular’s provisions, what it aims to achieve and examines its potential impact on banks and their customers.
