The Central Bank of Nigeria (CBN) has taken a tough stance against large-scale borrowers who fail to repay their debts, ordering all banks to stop granting new loans or special banking services to debtors with non-performing facilities on their records.
The directive was contained in a letter sent to all banks on March 12, 2026, signed by the Director of Banking Supervision, Olubukola Akinwunmi.
The CBN explained that this measure is necessary to prevent big debtors from causing disruptions that could threaten the stability of the entire banking industry.
According to the new rules, any large borrower whose loan is marked as "non-performing" in the Credit Risk Management System (CRMS) or any licensed private credit bureau will be blocked from accessing additional credit facilities.
The restriction covers not just regular loans but also essential business tools such as letters of credit, performance bonds, and bank guarantees.
"Effective immediately, 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 CBN stated.
The apex bank added that "such obligors shall not be granted banking facilities or contingent liabilities such as bankers' confirmations, letters of credit, performance bonds, or advance payment guarantees."
The CBN defines these "large-ticket" borrowers as those whose total loans across different banks exceed the legal limits allowed for a single person or company.
When such borrowers fail to pay, it can damage a bank's capital base and put the entire economy at risk.
To further protect the banking sector, the regulator instructed lenders to demand additional collateral—such as property or other valuable assets—from these debtors to ensure existing loans are properly covered.
This requirement aims to strengthen the security backing for outstanding facilities and minimize potential losses.
The crackdown comes as the banking sector experiences a rise in non-performing loans, with regulators increasingly concerned about the concentration of credit risk among a small number of large borrowers.
Industry analysts suggest the move could help clean up bank balance sheets and encourage more responsible borrowing practices among Nigeria's biggest debtors.
Banks are expected to implement the new guidelines immediately, with compliance monitored through regular regulatory reporting and on-site examinations by CBN officials.
#CBN #Banking #Loans #Debtors #NigeriaEconomy #FinancialRegulation #BankingNews #NonPerformingLoans
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