CBN bars big debtors from new loans, banking facilities
The Central Bank of Nigeria (CBN) has taken a tough stance against big borrowers who fail to pay back their debts. In a new move to keep the nation’s financial
The Central Bank of Nigeria (CBN) has taken a tough stance against big borrowers who fail to pay back their debts.
In a new move to keep the nation's financial system safe, the apex bank has ordered all banks to stop giving new loans or special banking services to large-scale debtors who have bad or unrepaid loans on their records.
This directive was contained in a letter sent to all banks on March 12, 2026, signed by the Director of Banking Supervision, Olubukola Akinwunmi.
The CBN explained that this measure is necessary to stop big debtors from causing problems that could disrupt the stability of the entire banking industry.
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According to the new rules, any big borrower whose loan is marked as "non-performing" in the Credit Risk Management System (CRMS) or any private credit bureau will be blocked from getting more money. This restriction covers not just regular loans but also other important business tools like letters of credit, performance bonds, and bank guarantees.
"Effective immediately, 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," the CBN stated.
The bank added that "such obligors shall not be granted banking facilities or contingent liabilities such as bankers' confirmations, letters of credit, performance bonds, or advance payment guarantees."
The CBN defines these "large-ticket" borrowers as those whose total loans across different banks are so high that they exceed the legal limits allowed for a single person or company.
If these people fail to pay, it can damage a bank's capital and put the whole economy at risk.
To further protect the banks, the regulator told lenders to demand more collateral—such as property or other valuable assets—from these debtors to make sure the existing loans are properly covered.
This crackdown comes as the banking sector experiences a rise in bad loans.
