The Central Bank of Nigeria has directed banks to deny certain banking services and additional credit facilities to large borrowers with non-performing loans as part of measures to strengthen credit discipline in the banking sector.
The directive was contained in a letter dated March 12, 2026 and signed by the Director of Banking Supervision, Olubukola Akinwunmi, according to a report by Nairametrics.
Under the directive, borrowers whose loan facilities have been classified as non-performing and recorded in the Credit Risk Management System or any licensed private credit bureau will no longer be eligible to obtain additional credit from banks.
The apex bank said the measure was designed to reduce risks posed by large borrowers whose defaults could threaten financial system stability.
“Effective immediately, all financial institutions shall: Restrict further credit access: Any large-ticket obligor with a nonperforming facility recorded in the CRMS and/or any licensed private credit bureau shall not be granted additional credit facilities.
“For the purpose of this restriction, credit facilities include loans and other forms of direct credit. In addition, such obligors shall not be granted banking facilities or contingent liabilities such as bankers’ confirmations, letters of credit, performance bonds, or advance payment guarantees,” the bank said.
The CBN explained that the restrictions apply to borrowers classified as large-ticket obligors under the prudential guidelines for deposit money banks.
According to the regulator, such borrowers include individuals or companies whose combined exposure across banks exceeds the Single Obligor Limit or whose financial obligations could significantly affect a bank’s capital adequacy ratio.
The bank also directed financial institutions to obtain additional realisable collateral from affected borrowers in order to adequately secure existing loan exposures.
It said the determination of affected borrowers would rely on information captured in the Credit Risk Management System and reports from licensed private credit bureaus.
The directive reinforces an earlier circular issued in June 2024 in which the apex bank barred loan defaulters from accessing new credit facilities within the banking system.
According to Nairametrics, the move comes amid concerns over rising bad loans in the banking sector.
(Punch)
