By our Reporter
The Central Bank of Nigeria (CBN) has imposed restrictions on banking services for chronic loan defaulters and large borrowers with non-performing loans, in a move aimed at strengthening credit discipline in the financial system.
The directive was announced on Wednesday following remarks by the CBN Governor, Olayemi Cardoso, at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum in Abuja.
Cardoso stated that the era of regulatory forbearance for delinquent borrowers had ended, stressing that the apex bank is adopting stricter measures to enforce accountability and protect the banking sector.
Under the new policy, individuals and entities classified as “large-ticket obligors” with non-performing loans will be barred from accessing fresh credit facilities, as well as key banking instruments such as letters of credit and performance bonds.
The CBN said the measure is designed to curb the practice of “credit jumping,” where defaulters move between banks to accumulate additional debt without repayment.
“Our stance on corporate governance is unequivocal: zero tolerance for violations,” Cardoso said, noting that tighter supervision and enhanced compliance standards have been introduced across the sector.
The apex bank added that the restriction is part of efforts to instil a stronger culture of repayment among borrowers, protect depositors’ funds, and safeguard the stability of the financial system.
It also reaffirmed its commitment to orthodox monetary policy, emphasising a focus on price stability, policy credibility, and restoring confidence in the national currency.
The move comes as the banking sector continues to strengthen its capital base, with the CBN determined to ensure that newly injected funds are not undermined by poor credit practices.
