The Central Bank of Nigeria (CBN) has directed commercial banks and other financial institutions to deny certain banking services and additional credit facilities to large borrowers with non-performing loans, in a move aimed at strengthening credit discipline within the banking sector.
The directive was conveyed in a letter dated March 12, 2026, signed by the Director of Banking Supervision, Olubukola Akinwunmi, according to a report by Nairametrics.
Under the new instruction, borrowers whose loan facilities have been classified as non-performing and recorded in the Credit Risk Management System (CRMS) or any licensed private credit bureau will no longer be eligible to obtain further credit from banks.
The apex bank said the policy is intended to reduce systemic risks posed by large borrowers whose loan defaults could undermine financial stability.
“Effective immediately, all financial institutions shall restrict further credit access. Any large-ticket obligor with a non-performing facility recorded in the CRMS and/or any licensed private credit bureau shall not be granted additional credit facilities,” the CBN stated.
The regulator further clarified that the restriction extends beyond traditional loans. It also covers other forms of banking support, including contingent liabilities.
“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 added.
According to the CBN, the directive applies specifically to borrowers classified as “large-ticket obligors” under the prudential guidelines for deposit money banks.
These include individuals or corporate entities whose combined exposure across multiple banks exceeds the Single Obligor Limit or whose financial obligations could materially affect a bank’s capital adequacy ratio.
To strengthen risk management, the apex bank also instructed financial institutions to obtain additional realisable collateral from borrowers affected by the directive to adequately secure existing loan exposures.
Banks are expected to determine affected customers using data captured in the Credit Risk Management System as well as reports obtained from licensed private credit bureaus.
The latest measure reinforces an earlier circular issued by the CBN in June 2024, which barred loan defaulters from accessing new credit facilities within Nigeria’s banking system.
The directive comes amid growing concerns about rising levels of non-performing loans in the banking sector, with regulators seeking stricter enforcement of lending discipline to safeguard the stability of the financial system.
