CBN has directs banks to restrict services to loan defaulters

The Central Bank of Nigeria (CBN) has directed all commercial banks in the country to restrict banking services for loan defaulters, especially individuals and companies owing large unpaid debts.

According to a new circular issued to banks, borrowers with non-performing loans recorded in the national credit system will no longer be allowed to access new credit facilities or certain banking guarantees.

The directive targets “large-ticket obligors” — individuals or companies owing huge sums to banks — whose unpaid loans could pose risks to the Nigerian financial system.

CBN says the measure is aimed at strengthening financial stability, protecting depositors, and improving credit discipline in the banking sector.