The Central Bank of Nigeria (CBN) has introduced stricter measures aimed at improving credit discipline in the banking sector by directing financial institutions to deny certain banking services and additional credit facilities to large borrowers with non-performing loans.
The directive was contained in a letter dated March 12, 2026, signed by the Director of Banking Supervision at the apex bank, Olubukola Akinwunmi.
According to the directive, borrowers whose loan facilities have been classified as non-performing will no longer be eligible to access fresh credit from banks if their records appear in the Credit Risk Management System (CRMS) or any licensed private credit bureau.
The apex bank explained that the move forms part of broader efforts to strengthen lending discipline within Nigeria’s financial system and to curb the risks associated with persistent loan defaults by large borrowers.
Under the new policy, financial institutions are required to thoroughly review the credit status of borrowers through the CRMS and recognized credit bureaus before approving additional loan facilities.
Any borrower flagged with a non-performing loan in the system would automatically be disqualified from receiving further credit until the outstanding obligations are settled or regularised.
The CBN noted that the directive is particularly targeted at large borrowers whose loan defaults could pose significant threats to the stability of the banking system.
According to the regulator, persistent defaults among major borrowers not only weaken banks’ balance sheets but also undermine confidence in the financial sector.
The apex bank stressed that enforcing stricter compliance with credit reporting mechanisms would help promote responsible borrowing and ensure that credit facilities are allocated to individuals and businesses with proven repayment capacity.
Industry analysts say the directive could push many corporate borrowers and large business entities to prioritise loan repayment in order to maintain access to credit.
They also note that the move is likely to strengthen the role of credit bureaus in Nigeria by encouraging banks to rely more heavily on credit history before granting loans.
The policy is expected to compel banks to adopt more cautious lending practices while reinforcing existing risk management frameworks within the sector.
Financial experts have long argued that poor loan recovery and repeated defaults by influential borrowers contribute significantly to the build-up of non-performing loans in the banking industry.
By tightening restrictions on such borrowers, the CBN aims to reduce the accumulation of bad loans and protect the financial system from systemic risks.
The directive also signals the regulator’s continued commitment to strengthening financial sector oversight and ensuring that banks operate in line with sound risk management standards.
Observers believe that the policy could encourage greater transparency in credit reporting and help improve overall financial discipline among borrowers in the Nigerian economy.
