The Central Bank of Nigeria (CBN) has ordered banks to suspend offering certain banking services to borrowers with large non-performing loans (NPLs) in furtherance of its regulatory initiatives aimed at enhancing credit discipline and protecting the stability of the financial system.
The apex bank, in a circular dated March 12, 2026 and signed by its Director of Banking Supervision, Olubukola Akinwunmi, directed the banks to take immediate steps to limit further financial access for customers with huge bad loans.
In the new regulatory directive, the apex bank maintained that any borrower classified as having a non-performing loan and listed in the Credit Risk Management System (CRMS) or in the records of licensed private credit bureaus would be barred from accessing additional credit from banks.
The CBN clarified that the measure was specifically targeted at large-ticket borrowers, whose defaulted loans could pose significant risks to banks and potentially threaten the wider financial system.
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It stressed that banks must immediately stop granting new credit facilities to such borrowers and that the restriction covered all forms of direct credit, including loans and similar financing arrangements.
This is even as the apex bank stated in the circular that in addition to loans, the affected borrowers should also be denied other banking services that create financial obligations for banks, including contingent liabilities such as letters of credit, bankers’ confirmations, performance bonds, and advance payment guarantees.
