- CBN directs banks to restrict loans for large borrowers in default
- Applies to borrowers with non-performing loans recorded in credit systems
- Affected obligors will also lose access to letters of credit and bank guarantees
- Policy aims to protect Nigeria’s financial system stability
The Central Bank of Nigeria has directed commercial banks to restrict access to new credit facilities for large borrowers who are currently in default on existing loan obligations.
The directive was contained in a letter dated March 12, 2026, signed by Olubukola Akinwunmi, according to a report by Nairametrics.
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Under the new policy, borrowers whose loans have been classified as non-performing and recorded in the Credit Risk Management System or any licensed private credit bureau will no longer be eligible to obtain additional loans from banks.
The apex bank explained that the move is designed to reduce risks posed by large borrowers whose defaults could threaten the stability of the financial system.
According to the directive, financial institutions must immediately enforce the restriction.
“Effective immediately, all financial institutions shall restrict further credit access. Any large-ticket obligor with a nonperforming facility recorded in the CRMS and/or any licensed private credit bureau shall not be granted additional credit facilities,” the CBN stated.
The bank also clarified that the restriction covers several financial services, including:
• Loans and other direct credit facilities
• Letters of credit
• Bankers’ confirmations
• Performance bonds
• Advance payment guarantees
These services are often used by businesses for international trade and major financial transactions.
The regulation applies specifically to borrowers classified as large-ticket obligors under the prudential guidelines for Deposit Money Banks.
According to the CBN, this category includes individuals or companies whose financial exposure across banks:
• Exceeds the Single Obligor Limit, or
• Is large enough to significantly affect a bank’s capital adequacy ratio.
The central bank noted that the measure is intended to strengthen risk management practices within Nigeria’s banking
sector.