CBN Directs Banks To Restrict Credit For Large-Scale Borrowers With Non-Performing Loans
The Central Bank of Nigeria (CBN) has ordered banks to limit access to certain banking services for large borrowers with non-performing loans, as part of efforts to strengthen credit discipline and safeguard the stability of the financial system.
In a letter dated March 12, 2026, and signed by Olubukola Akinwunmi, Director of Banking Supervision, the CBN instructed that borrowers whose loans are classified as non-performing in the Credit Risk Management System (CRMS) or any licensed private credit bureau will no longer qualify for new credit facilities.
The apex bank said the directive aims to reduce the risks posed by large-ticket borrowers whose defaults could threaten 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. This includes loans and other forms of direct credit. Such obligors shall also be denied banking facilities or contingent liabilities, including bankers’ confirmations, letters of credit, performance bonds, or advance payment guarantees,” the CBN stated.
The restrictions apply to borrowers classified as large-ticket obligors under Clause 3.2(d) of the Prudential Guidelines for Deposit Money Banks.
Banks are also required to secure additional realisable collateral from affected borrowers to protect existing exposures.
According to the CBN, large-ticket obligors are borrowers whose total exposure across banks exceeds the Single Obligor Limit and whose obligations significantly impact a bank’s Capital Adequacy Ratio or pose systemic risks to the financial system. Exposure assessments will be based on data from the CRMS and licensed private credit bureaus.
