Manny Ita –
The Central Bank of Nigeria (CBN) has issued a direct mandate to all commercial, merchant, and non-interest banks to restrict “large-ticket” obligors with non-performing loans (NPLs) from accessing additional credit or specialized financial services. In a circular dated March 12, 2026, referenced BSD/DIR/CON/LAB/019/003, the apex bank characterized the move as a critical step toward safeguarding the stability of the national financial system and curbing systemic credit abuse. The directive specifically targets high-value borrowers whose outstanding debts are classified as non-performing within the Credit Risk Management System (CRMS) or by licensed private credit bureaus.
Under the new regulatory framework, affected obligors are strictly prohibited from obtaining any form of direct credit or contingent banking liabilities. This exclusion extends beyond traditional loans to include essential trade and business instruments such as letters of credit, bankers’ confirmations, performance bonds, and advance payment guarantees. “In furtherance of its mandate to promote a sound financial system, protect depositors, and enhance prudential compliance, the CBN hereby directs all banks to restrict non-performing large-ticket obligors, whose activities pose systemic risk,” stated Olubukola A. Akinwunmi, the Director of Banking Supervision, in the official communication to financial institutions.
The apex bank further instructed lenders to intensify efforts in de-risking existing exposures to these high-value defaulters. Banks have been mandated to strengthen collateral coverage by securing additional realisable assets where current security is deemed insufficient. The regulator emphasized that the restriction is designed to prevent delinquent borrowers from accumulating further liabilities across the banking industry, a practice that officials say undermines credit discipline and heightens the risk of contagion. “This is to ensure consistency and effectiveness in curbing credit abuse by large-ticket obligors,” the circular further clarified.
Compliance with the new directive will be closely monitored by the CBN as part of its broader oversight of the ongoing banking sector recapitalization, which is scheduled for completion by March 31, 2026. The regulator warned that any institution found to be in breach of these guidelines would face severe regulatory sanctions. Such penalties will be applied in accordance with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020, as the central bank seeks to maintain a transparent and resilient credit environment during the current macroeconomic transition.
