Central Bank of Nigeria (CBN) has restricted banking services for large-ticket loan defaulters as part of measures to enforce credit discipline and safeguard the financial system.
The directive, issued on Wednesday, March 26, follows remarks by CBN Governor Olayemi Cardoso at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum in Abuja.
Cardoso declared that the period of leniency toward delinquent borrowers is over, emphasizing that the apex bank is tightening corporate governance measures to safeguard the N4.61 trillion recently injected into the banking sector.
“Our stance on corporate governance is unequivocal: zero tolerance for violations. By ending years of regulatory forbearance, we have reinforced accountability, tightened supervision, and elevated compliance standards across the sector,” the Governor stated.
The new directive specifically targets “large-ticket obligors”, individuals or entities with significant outstanding debts classified as non-performing in the Credit Risk Management System.
Under the new rules, these defaulters will be barred from accessing not only fresh credit but also essential contingent liabilities and trade instruments.
“We have implemented a restriction of banking services to non-performing large-ticket obligors. This decisive step underscores our commitment to credit discipline, financial integrity, and accountability,” the statement read.
The measure aims to stop defaulters from “credit jumping,” a practice where borrowers move between financial institutions to secure additional loans despite outstanding debts.
“This restriction on banking services to non-performing large-ticket obligors underscores our commitment to credit discipline, financial integrity, and accountability,” the CBN stated.
The regulator says the policy is designed to instil a long-absent “culture of repayment,” safeguard depositors’ funds, and strengthen the stability of the financial system.
“The CBN remains firmly anchored in orthodox monetary policy, focused on restoring price stability, strengthening policy credibility, and anchoring expectations through discipline and consistency,” Cardoso said
