Dear CBN, We are all debtors! -By Zainab Ajibola

Godwin Emefiele, Central Bank Governor

Early this week, names of chronic debtors of some commercial banks in the country were published by commercial banks in line with CBN directive to do so on a quarterly basis. The debtors have outstanding amounts owed to the tune of N50 million and above.

Many businesses and religious bodies, according to a Daily Trust report of Tuesday, August 4, 2015, are said to have made the list “for owing banks monies running into billions.” More banks, the report said, are expected to publish more names of their defaulters in the coming weeks.

But while these figures are mind-boggling for us laymen, small business owners are grappling with debts too. My question is, what happens to those debtors? As a small business owner trying to break even, things have been far from rosy. Coupled with the poor economic equation which has made businesses suffer on top of the erratic power supply, high cost of rented space and payment of service charges and staff salaries, we still contend with customers who can’t or won’t just pay for the goods bought or services rendered to them.
These class of chronic debtors are unrepentant and have no bones making use of their purchased goods before thinking of paying. Others are a little less obvious and won’t feel comfortable putting the purchased goods on credit to use before they are able to pay for it/them. In all fairness, some debtors can’t afford a good night’s sleep until they are in the clear. Those are likely to be people who fear having their names dragged through mud, losing their honour and goodwill or simply fear dieing and being called to account for their debts by their Creator.

People may owe out of no design of their own and that is why it is encouraged to give the debtor ample grace to pay up a debt and even better to write off that debt if indeed they meant to pay but just couldn’t meet up. But some others are just who they are – chronic debtors that can’t seem to live within their means and keep putting up appearances to fit a certain social status in the society.

For small business owners, writing off bad debts will soon have the businesses closing down earlier than imagined, which is unfair. Investing to be self-sufficient and developing the economy shouldn’t be a bad thing but it’s discouraging when people take your goodwill for granted. The king (customer) should respect the servant (business owner). That is why it is said that ‘there is no friendship in business.’ Most entrepreneurs who know the golden rule of ‘customer being king’ are therefore caught between the devil and the deep sea when it comes to debtors.

That is why the CBN should not focus only on banks. MSMEs are the main drivers of the economy and need a more enabling environment to operate and grow. We may need to start publishing names of our debtors too or apply for bailouts from the federal government. We also need to have the government boys operating as tax collectors in their different shades called off our backs. They are exploitative, to say the least, making Nigeria more of a difficult market to operate in.
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There has to be a tidier way to do things. Friends tell me that I am lucky that my present business is just my second attempt. Others have had a long string of failed business experiences, which is too bad. If there aren’t enough jobs to go round the number of unemployed people within productive age, those that strive to stay afloat in their private ventures should be given all the necessary support rather than the frustrations they are met with in the name of running a business.

Even at the home-front, some neighbours, friends, relatives and acquaintances are chronic debtors. Some people ‘borrow’ their children’s savings and lie that they will pay back but don’t. As incredulous as this may sound, some neighbours ‘borrow’ food stuff! And although when they ask, they claim they will return, that never gets to happen because the giver is gracious enough or too embarrassed by such an act of borrowing that he/she says it is unecessary to return. Imagine borrowing onions, matches, maggi or rice!

Some people let the goodness come their way and then abuse the privilege. For instance, you get Sallah or Christmas food from a neighbour, clean the plate and keep it, ‘forgetting’ to return it afterwards; haba! Yet again, some haggle over small change when paying for something like their lives depended on it, and not a few have met with their untimely deaths in scuffles that break out over attempts to get paid which turned violent! I hear some people borrow personal items like shoes and clothing! My siblings and I used to do this while growing up, which seemed normal to me but it’s outrageous to share personal effects with people who are not immediate family members. Even back then, people would notice if a borrowed piece of clothing was too loose or long and used to tease ‘inheritors’ of such clothing with nicknames such as ‘borrow borrow make me rich’ or ‘my sister dash me’, which was embarrassing enough!

While it is good to share with others and be gracious to the debtor in paying back what he owes, some borrowing habits are just plainly ridiculous and some people are such chronic debtors that even the goodness of the heart of the giver begins to turn to resentment, eventually leaving them with no choice than to stop their forced acts of ‘charity’ altogether.

Then they start to avoid you like the plague and it’s not impossible one or two others may get to hear about your chronic bad habit.

The solution is simple – cut your cloth according to your cloth! If you can’t afford it, leave it! A good name is always better than a tainted one associated with all the oil in Kuwait. If you do mean to repay and just cant yet due to circumstances beyond your control, appeal for understanding and strive to clear your name before the cat is let out of the bag like the banks are now doing to their debtors. And like the banks, if people being owed are allowed to start listing their debtors, im certain many would almost certainly be culpable. If you’re one of such, let the banks’ list of debtors be a wake up call -kindly double efforts to pay up and dump the habit of borrowing starting today.