Prosper Okoye
Central Bank of Nigeria has directed commercial banks to deny additional credit and certain banking services to large borrowers with non-performing loans, in a move aimed at strengthening credit discipline and reducing financial risks in the banking system.
In a letter dated March 12, 2026, the Central Bank of Nigeria instructed lenders to restrict access to new credit for borrowers whose loans have been classified as non-performing and recorded in the Credit Risk Management System or in any licensed private credit bureau.
The directive was signed by the Director of Banking Supervision, Olubukola Akinwunmi.
Join our WhatsApp Channel“Effective immediately, all financial institutions shall restrict further credit access,” the central bank said, adding that any large-ticket borrower with a non-performing facility listed in the credit database “shall not be granted additional credit facilities.”
The regulator said the restrictions also cover other banking services that create financial obligations, including bankers’ confirmations, letters of credit, performance bonds and advance payment guarantees.
According to the bank, the measure targets borrowers classified as “large-ticket obligors” under prudential guidelines for deposit money banks. These include individuals or companies whose total exposure across banks exceeds the Single Obligor Limit or whose obligations could materially affect a bank’s capital adequacy.
The central bank also instructed financial institutions to obtain additional realisable collateral from affected borrowers to better secure existing loan exposures.
It said banks would determine affected customers using records in the Credit Risk Management System and reports from licensed private credit bureaus.
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The latest directive reinforces an earlier circular issued by the central bank in June 2024 barring loan defaulters from accessing new credit within the banking system.
The move comes amid growing concern over rising non-performing loans in Nigeria’s banking sector, according to financial publication Nairametrics.
Prosper Okoye is a Correspondent and Research Writer at Prime Business Africa, a Nigerian journalist with experience in development reporting, public affairs, and policy-focused storytelling across Africa
