The Central Bank of Nigeria (CBN) has directed commercial banks to deny fresh credit and key banking services to large borrowers with outstanding non-performing loans, in a move aimed at strengthening discipline in the banking sector and safeguarding financial stability.
The directive, communicated to banks in a circular dated March 12, 2026, was signed by the Director of Banking Supervision, Olubukola Akinwunmi.
Under the new rule, borrowers whose loans are classified as non-performing in the Credit Risk Management System (CRMS) or in any licensed private credit bureau will be ineligible to access additional credit or related financial instruments from banks.
The restriction also extends beyond conventional loans to include several banking facilities often used in major business transactions.
“Effective immediately, 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,” the CBN stated.
The apex bank further warned lenders not to extend other forms of financial support to such borrowers.
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“Such obligors shall not be granted banking facilities or contingent liabilities such as bankers’ confirmations, letters of credit, performance bonds, or advance payment guarantees,” it added.
The CBN explained that the directive targets “large-ticket” borrowers, individuals or companies whose cumulative borrowing across multiple banks exceeds regulatory single obligor limits and therefore poses significant risk to lenders.
According to the regulator, defaults by such high-value borrowers could undermine banks’ capital base and threaten the stability of the financial system.
To mitigate existing risks, the apex bank also instructed banks to strengthen collateral requirements for outstanding facilities held by such borrowers to ensure the loans remain adequately secured.
The move comes amid rising non-performing loans (NPLs) within the banking industry.
Recent data from the CBN’s macroeconomic outlook shows that the sector’s NPL ratio has risen to about seven per cent, above the regulator’s prudential benchmark of five per cent.
By restricting access to new credit for defaulting large borrowers, the CBN aims to enforce stronger credit discipline and ensure that major debtors meet their repayment obligations to the banking system.
