RismadarVoice Reporters
March 27, 2026
The Central Bank of Nigeria (CBN) has announced a major policy shift restricting banking services for chronic loan defaulters and large-ticket obligors with non-performing loans.
The directive, issued on Wednesday, follows remarks by the CBN Governor, Olayemi Cardoso, at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum held in Abuja.
Cardoso said the apex bank would no longer tolerate persistent loan defaults, declaring an end to years of regulatory forbearance that allowed delinquent borrowers to continue accessing financial services.
“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,” he said.
Under the new policy, individuals, entities classified as “large-ticket obligors” with non-performing loans in the Credit Risk Management System will be barred from accessing fresh credit, as well as key banking instruments such as letters of credit and performance bonds.
The CBN said the move is aimed at strengthening credit discipline and preventing “credit jumping,” a practice where defaulters move between banks to secure additional loans without repaying existing debts.
“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 bank stated.
The apex bank noted that the policy is also intended to protect depositors, safeguard the stability of the financial system, especially in light of the N4.61 trillion in new capital recently raised by the banking sector.
“By curbing access to banking services for chronic defaulters, we are reinforcing the culture of repayment and protecting the financial system,” the statement added.
Cardoso also reaffirmed the CBN’s commitment to orthodox monetary policy, emphasising a shift away from interventionist strategies toward a focus on price stability and strengthening confidence in the naira.
For years, Nigeria’s banking sector has grappled with high-profile loan defaults involving wealthy individuals and large corporations, a trend that has posed risks to financial stability.
The new measures signal a tougher regulatory stance by the apex bank aimed at restoring discipline and accountability in the financial system.
