CBN bars major debtors from new loans to safeguard banking sector
CBN
Abdullateef Fowewe
The Central Bank of Nigeria (CBN) has issued a directive barring large-scale debtors with unpaid loans from accessing new credit or banking services, aiming to shield the financial system from collapse.
In a circular dated March 12, 2026, signed by Director of Banking Supervision Olubukola Akinwunmi, the CBN ordered all deposit money banks to immediately halt fresh facilities for “large-ticket obligors” flagged with non-performing loans in the Credit Risk Management System (CRMS) or any licensed credit bureau.
“Effective immediately, 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 directive states.
It extends the ban to contingent liabilities like letters of credit, performance bonds, bankers’ confirmations, and advance payment guarantees.
The CBN defines large-ticket borrowers as those whose aggregate exposures across banks exceed regulatory single-obligor limits, posing systemic risks if they default and erode bank capital.
Banks must also ramp up collateral requirements, such as property or other assets, to secure existing loans from these high-risk clients.
The move addresses a surge in non-performing loans (NPLs), now at about 7% industry-wide—above the CBN’s 5% prudential threshold.
This spike follows the 2025 withdrawal of pandemic-era forbearance, which had masked restructured debts now classified as bad.
