The Central Bank of Nigeria (CBN) has instructed banks to impose restrictions on specific banking services for large-exposure borrowers whose loans have become non-performing. The move is part of broader efforts to protect the stability of the financial system and reinforce responsible credit behavior.

The directive was communicated in a circular dated March 12, 2026, addressed to all deposit money banks and signed by Olubukola Akinwunmi, Director of Banking Supervision.

According to the apex bank, borrowers whose credit facilities have been classified as non-performing and recorded in the Credit Risk Management System (CRMS) or in any licensed private credit bureau database will no longer qualify for additional credit facilities from financial institutions.

Key Details of the Directive

The CBN explained that the measure is designed to limit the risks posed by large borrowers whose loan defaults could have significant consequences for the banking sector.

Under the new directive, financial institutions are required to immediately implement the following restrictions:

Deny additional credit access: Any large-ticket borrower with a non-performing facility recorded in the CRMS or with a licensed credit bureau must not be granted new loans or other direct credit facilities.

Suspend certain banking services: Affected borrowers will also be restricted from accessing contingent banking instruments such as letters of credit, bankers’ confirmations, performance bonds, and advance payment guarantees.

The apex bank clarified that these restrictions apply to borrowers whose exposures meet the definition of large-ticket obligors under Clause 3.2(d) of the Prudential Guidelines for Deposit Money Banks.

Additional Requirements for Banks

In addition to restricting new credit, banks have been directed to obtain additional realizable collateral from affected borrowers in order to strengthen the security backing their existing loan exposures.

The CBN further noted that large-ticket obligors typically include borrowers whose total exposure across multiple banks exceeds the Single Obligor Limit, or whose indebtedness could materially affect a bank’s Capital Adequacy Ratio or pose broader systemic risks to the financial system.

Determination of such exposures will rely primarily on data captured in the Credit Risk Management System and information obtained from licensed private credit bureaus.