The Central Bank of Nigeria (CBN) has directed banks to deny certain banking services and additional credit facilities to large borrowers with non-performing loans (NPLs), in a move aimed at reinforcing credit discipline in the banking sector.
The directive, contained in a letter dated March 12, 2026, and signed by the Director of Banking Supervision, Olubukola Akinwunmi, instructs banks to restrict further credit access to borrowers whose facilities are classified as non-performing and recorded in the Credit Risk Management System (CRMS) or any licensed private credit bureau, according to Nairametrics.
“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 apex bank stated.
The CBN clarified that the restrictions apply to loans, other forms of direct credit, and banking facilities or contingent liabilities, including bankers’ confirmations, letters of credit, performance bonds, and advance payment guarantees.
Under the guidelines, large-ticket obligors include individuals or companies whose combined exposure across banks exceeds the Single Obligor Limit or whose financial obligations could significantly affect a bank’s capital adequacy ratio.
Financial institutions are also required to obtain additional realisable collateral from affected borrowers to secure existing loan exposures. The determination of these borrowers will rely on data captured in the CRMS and reports from licensed private credit bureaus.
The directive reinforces a previous circular issued in June 2024, which barred loan defaulters from accessing new credit facilities within the banking system.
According to Nairametrics, the move comes amid growing concerns over rising bad loans in the Nigerian banking sector, highlighting the regulator’s commitment to maintaining financial stability.
