The Central Bank of Nigeria (CBN) has directed banks to restrict access to certain banking services for large-ticket borrowers with non-performing loans, as part of efforts to safeguard financial system stability and strengthen credit discipline.
The apex bank gave this directive in a letter sent to all banks dated March 12, 2026, and signed by the Director of Banking Supervision, Olubukola Akinwunmi.
According to the CBN, borrowers whose loan facilities are 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 access additional credit facilities.
What the CBN is saying
The apex bank said the measure is aimed at limiting the risks posed by large-ticket obligors whose loan defaults could threaten the stability of the banking sector.
- “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 stated.
The CBN noted that these restrictions will apply to borrowers whose exposures meet the definition of large-ticket obligors as outlined in Clause 3.2(d) of the Prudential Guidelines for Deposit Money Banks.
Banks have also been directed to obtain additional realisable collateral from the affected borrowers to adequately secure their existing exposures.
According to the apex bank, large-ticket obligors include borrowers whose combined exposure across banks exceeds the Single Obligor Limit and whose obligations materially affect a bank’s Capital Adequacy Ratio or otherwise pose systemic risks to the financial system.
The CBN said the determination of such exposures will rely on information captured in the CRMS as well as reports from licensed private credit bureaus.
Flashback
This is not the first time the CBN has issued this type of directive to banks. In a similar directive issued on June 30, 2024, the apex bank had also prohibited loan defaulters from further access to credit facilities in the banking system.
- The regulator noted that the latest directive reinforces earlier measures aimed at curbing credit abuse in the banking system.
- The CBN said it would monitor compliance with this new directive to ensure consistent implementation across the banking industry.
It added that non-compliance will attract appropriate regulatory sanctions in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
What you should know
Nairametrics reported that Nigeria’s banking sector saw a fresh rise in bad loans in 2025 after the CBN withdrew the regulatory forbearance that allowed banks to restructure pandemic-hit facilities without classifying them as non-performing.
Data from the CBN’s latest macroeconomic outlook showed that the banking industry’s Non-Performing Loans ratio climbed to an estimated 7%, pushing the sector above the prudential ceiling of 5%.
The regulator explained that the increase followed the crystallisation of previously restructured loans that could no longer qualify for special consideration once the relief window expired.
