Lagos, Nigeria – The Central Bank of Nigeria (CBN) has directed banks to restrict access to certain banking services for large-ticket borrowers with non-performing loans, as part of efforts to safeguard financial system stability and strengthen credit discipline.
Okay News reports that the directive, contained in a letter sent to all banks dated March 12, 2026, states that borrowers whose loan facilities are classified as non-performing and recorded in the Credit Risk Management System or any licensed private credit bureau will no longer be eligible to access additional credit facilities.
The apex bank said the measure is aimed at limiting the risks posed by large-ticket obligors whose loan defaults could threaten the stability of the banking sector. Such obligors shall also not be granted banking facilities or contingent liabilities such as bankers’ confirmations, letters of credit, performance bonds, or advance payment guarantees.
Banks have been directed to obtain additional realisable collateral from affected borrowers to adequately secure their existing exposures. Large-ticket obligors include borrowers whose combined exposure across banks exceeds the Single Obligor Limit and whose obligations materially affect a bank’s Capital Adequacy Ratio or otherwise pose systemic risks to the financial system.
This is not the first time the CBN has issued this type of directive. In a similar directive issued on June 30, 2024, the apex bank prohibited loan defaulters from further access to credit facilities.
The CBN said it would monitor compliance and warned that non-compliance will attract appropriate regulatory sanctions. Nigeria’s banking sector saw a fresh rise in bad loans in 2025 after the CBN withdrew regulatory forbearance, with the industry’s non-performing loans ratio climbing to an estimated 7 percent, above the prudential ceiling of 5 percent.
These non-performing loans restriction reinforces the CBN’s efforts to curb credit abuse and protect financial system stability.
 has directed banks to restrict access to certain banking services for large-ticket borrowers with non-performing loans, as part of efforts to safeguard financial system stability and strengthen credit discipline.){kind=link}