The Central Bank of Nigeria (CBN) has directed commercial banks to deny new loans and certain banking services to large borrowers with outstanding non-performing loans, in a move aimed at safeguarding the stability of the country’s financial system.
The directive was contained in a circular issued to banks on March 12, 2026, and signed by the Director of Banking Supervision, Olubukola Akinwunmi.
According to the apex bank, the measure is intended to prevent large-scale debtors with unpaid obligations from posing systemic risks to the banking sector.
Under the new policy, any borrower classified as a “large-ticket obligor” with a loan recorded as non-performing in the Credit Risk Management System (CRMS) or by any licensed private credit bureau will be barred from obtaining additional credit.
“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 restriction extends beyond conventional loans to include other financial instruments commonly used in business transactions.
“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 regulator added.
The CBN defines “large-ticket obligors” as borrowers whose combined loan exposure across multiple banks exceeds the statutory limit permitted for a single individual or corporate entity.
According to the regulator, defaults by such borrowers could significantly weaken banks’ capital positions and pose broader risks to the financial system.
To further safeguard the sector, the CBN also instructed banks to demand stronger collateral—such as property or other valuable assets—from affected borrowers to ensure that existing loans remain adequately secured.
The directive comes amid concerns over rising levels of non-performing loans in Nigeria’s banking industry.
