The Central Bank of Nigeria has directed commercial banks to immediately cut off further financial services to borrowers with large unpaid loans, in a decisive move to enforce credit discipline and safeguard the health of the banking system.
The directive was contained in a circular dated March 12, 2026, signed by the Director of Banking Supervision, Olubukola Akinwunmi.
Under the new rules, any borrower whose loan has been classified as non-performing and whose name appears in the Credit Risk Management System or in the records of licensed private credit bureaus will no longer be able to obtain fresh credit from any bank.
The CBN said the measure is specifically aimed at large-ticket borrowers — those whose defaulted loans are significant enough to pose a threat not just to individual banks but potentially to the broader financial system.
Banks have been told to immediately stop issuing new loans or any form of direct credit to these borrowers. The restriction is sweeping, covering all types of lending and financing arrangements.
But the clampdown does not stop at loans. The central bank also ordered that affected borrowers be denied access to other banking services that create financial exposure for banks.
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This includes contingent liabilities such as letters of credit, bankers’ confirmations, performance bonds and advance payment guarantees.
According to the circular, the restrictions apply to borrowers whose total credit exposure qualifies them as large-ticket obligors under Clause 3.2(d) of the Prudential Guidelines for Deposit Money Banks.
The CBN went further, instructing banks to tighten their risk management by demanding additional collateral from affected borrowers to better secure their existing loan exposures.
The regulator explained that large-ticket obligors are borrowers whose combined exposure across the entire banking system exceeds the Single Obligor Limit.
These exposures are flagged because of their potential to significantly erode a bank’s Capital Adequacy Ratio or trigger systemic risks across the financial sector.
To ensure compliance, the CBN directed banks to use credit data from the CRMS and information obtained from licensed private credit bureaus to verify the status and exposure levels of their borrowers.