The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to deny certain banking services and additional credit facilities to large borrowers with non-performing loans as part of efforts 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 at the apex bank, Olubukola Akinwunmi, according to a report by Nairametrics.
Under the new guideline, 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 additional credit from banks.
The CBN said the measure is aimed at reducing the risks posed by large borrowers whose loan defaults could threaten the stability of the financial system.
According to the directive, the restriction takes immediate effect and applies to all financial institutions.
“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 circular stated.
The apex bank explained that credit facilities include loans and other forms of direct lending. It added that such borrowers will also be barred from accessing certain banking services and contingent liabilities such as bankers’ confirmations, letters of credit, performance bonds and advance payment guarantees.
The CBN noted that the restrictions apply to borrowers classified as large-ticket obligors under the prudential guidelines for deposit money banks.
According to the regulator, this category includes individuals or companies whose combined loan exposure across banks exceeds the Single Obligor Limit or whose financial obligations could significantly affect a bank’s capital adequacy ratio.
The bank further directed financial institutions to obtain additional realisable collateral from affected borrowers to adequately secure existing loan exposures.
It added that the identification of such borrowers would rely on data captured in the Credit Risk Management System and reports from licensed private credit bureaus.
The directive reinforces an earlier circular issued in June 2024, which barred loan defaulters from accessing new credit facilities within the banking system, amid concerns over rising non-performing loans in the banking sector.
