ABUJA, NIGERIA — The Central Bank of Nigeria (CBN) has directed all commercial banks to restrict access to credit and specified banking services for large-ticket obligors with non-performing loans, in a move aimed at strengthening credit discipline and safeguarding the stability of the financial system.
In a circular dated March 12, 2026, and signed by the Director of Banking Supervision, Olubukola Akinwunmi, the apex bank instructed financial institutions to immediately deny additional credit facilities to borrowers whose loans are recorded as non-performing in the Credit Risk Management System (CRMS) or by any licensed private credit bureau.
The restriction covers not only loans and direct credit but also contingent banking facilities, including bankers’ confirmations, letters of credit, performance bonds, and advance payment guarantees.
The CBN defined large-ticket obligors as borrowers whose combined exposures across banks exceed the Single Obligor Limit (SOL) or whose obligations materially affect a bank’s Capital Adequacy Ratio (CAR), thereby posing systemic risks to the financial sector.
Banks were also directed to strengthen collateral coverage for existing exposures by obtaining additional realisable collateral from affected borrowers.
The directive reinforces an earlier circular issued on June 30, 2014, which prohibited loan defaulters from accessing fresh credit. The CBN warned that non-compliance would attract regulatory sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020.
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