The Central Bank of Nigeria (CBN) has issued an immediate and strict directive banning large obligors with non- performing loans from obtaining new credit or accessing key banking services.
In a circular dated March 12, 2026 (BSD/DIR/CON/LAB/019/003), signed by Olubukola Akinwunmi, Director of Banking Supervision, the apex bank instructed all deposit money banks to deny further credit, including loans and direct facilities, to these borrowers.
The restrictions also extend to contingent services such as
letters of credit,
performance bonds,
advance payment guarantees, and
bankers’ confirmations.
Large-ticket obligors are defined as borrowers- whether individuals or companies- whose combined exposures across banks:
Exceed the Single Obligor Limit (SOL), materially impact a bank’s Capital Adequacy Ratio (CAR), or pose systemic risks to the financial system, as per Clause 3. 3.2(d) of the 2010 Prudential Guidelines for Deposit Money Banks.
Identification of these obligors relies on records in the CBN’s Credit Risk Management System (CRMS) or reports from licensed private credit bureaus, especially for non- performing facilities (usually overdue by 90 + days).
Banks are also required to obtain additional realisable collateral from these obligors to secure existing exposures, although no specific timeline has been provided.
This initiative aims to combat credit abuse, reduce non- performing loans (NPLs), promote repayment discipline, and safeguard depositors and financial stability during sector reforms.
This policy expands previous guidelines, such as the 2014 thresholds for high- value defaulters, by focusing more precisely on large non- performing exposures and contingent liabilities.
Administrator and Writer
