Guidelines on Global Standing Instructions (GSI) How it works and Who can use GSI

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In pursuant of the powers conferred on the Central Bank of Nigeria (CBN) by Section 2 (d)

of the Central Bank of Nigeria Act, 2007; to promote a sound financial system in Nigeria;

the CBN hereby issues this guideline on Global Standing Instruction (GSI) to enhance loan

recovery across the banking sector.

The GSI shall serve as a last resort by a Creditor bank, without recourse to the Borrower, to

recover past due obligations (Principal and Accrued Interest only, excluding any Penal

Charges) from a defaulting Borrower through a direct set-off from deposits/investments held

in the Borrower’s qualifying bank accounts with participating financial institutions.

1.1 Objectives of GSI

The objectives of GSI include:

a) Facilitate an improved credit repayment culture;

b) Reduce Non-Performing Loans (NPLs) in the banking industry; and

c) Watch-listing consistent loan defaulters.

NOTE: The GSI shall not serve as a tool to recover ANY Penal Charges that may have

accrued on a credit/loan and included as part of outstanding balances/obligations of a

borrower.

2.0 ELIGIBLE ACCOUNT TYPES

The following types of accounts qualify for GSI:

a) Individual Savings Accounts;

b) Individual Current Accounts;

c) Individual Domiciliary Accounts;

d) Investment/Deposit Accounts (N & Foreign Currency); and

e) Electronic Wallets.

NOTE: Above also applies to Joint account(s)