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 strengthen credit discipline and safeguard the stability of the financial system.
The directive was contained in a letter sent to all banks on March 12, 2026, and signed by the Director of Banking Supervision, Olubukola Akinwunmi.
According to the apex bank, 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.
The CBN said the measure is designed to limit 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 non-performing facility recorded in the CRMS and/or any licensed private credit bureau shall not be granted additional credit facilities,” the directive stated.
The regulator clarified that credit facilities include loans and other forms of direct credit.
It added that affected borrowers will also be denied other banking services and contingent liabilities such as bankers’ confirmations, letters of credit, performance bonds, and advance payment guarantees.
The restrictions 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 affected borrowers to adequately secure their existing exposures.
According to the CBN, large-ticket obligors include borrowers whose combined exposure across banks exceeds the Single Obligor Limit and whose obligations could materially affect a bank’s Capital Adequacy Ratio or pose systemic risks to the financial system.
The determination of such exposures, the regulator said, will rely on data captured in the CRMS as well as reports from licensed private credit bureaus.
Similar Directive Issued Earlier
The latest directive reinforces earlier regulatory actions. In June 2024, the CBN issued a similar instruction prohibiting loan defaulters from accessing further credit facilities within the banking system.
The apex bank noted that the new measure strengthens ongoing efforts to curb credit abuse and improve loan recovery across the banking sector.
The CBN also warned that it will closely monitor compliance with the directive and that any violation will attract appropriate regulatory sanctions in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Nigeria’s banking sector has recently recorded an increase in bad loans. In 2025, non-performing loans rose after the CBN withdrew regulatory forbearance that previously allowed banks to restructure pandemic-affected loans without classifying them as non-performing.
Data from the apex bank’s latest macroeconomic outlook indicates that the banking industry’s Non-Performing Loans (NPL) ratio climbed to about 7 percent, exceeding the prudential threshold of 5 percent.
The CBN attributed the increase to the crystallisation of previously restructured loans that could no longer qualify for special consideration after the expiration of the relief window.
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