The Central Bank of Nigeria (CBN) has instructed 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, detailed in a letter dated March 12, 2026, was signed by the Director of Banking Supervision, Olubukola Akinwunmi, according to Nairametrics.
Under the directive, borrowers with loan facilities classified as non-performing and recorded in the Credit Risk Management System (CRMS) or any licensed private credit bureau will no longer be eligible for additional credit from banks.
The CBN said the measure aims to mitigate risks posed by large borrowers whose defaults could threaten the stability of the financial system.
“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.
For this purpose, credit facilities include loans and other forms of direct credit. Additionally, such obligors shall not be granted banking facilities or contingent liabilities, including bankers’ confirmations, letters of credit, performance bonds, or advance payment guarantees,” the bank stated.
The restrictions apply to borrowers classified as large-ticket obligors under the prudential guidelines for deposit money banks. These include individuals or companies whose combined exposure across banks exceeds the Single Obligor Limit or whose obligations could significantly impact a bank’s capital adequacy ratio.
The CBN also directed financial institutions to obtain additional realizable collateral from affected borrowers to secure existing loan exposures. Identification of such borrowers will rely on data from the CRMS and reports from licensed private credit bureaus.
This directive reinforces a June 2024 circular in which the CBN barred loan defaulters from accessing new credit facilities within the banking system.
Nairametrics reported that the move comes amid growing concerns over rising bad loans in the banking sector.
