CBN Restricts Credit Access for Defaulting Large-Ticket Borrowers
Edino Chubiyo Cornelius 
ABUJA, Nigeria – The Central Bank of Nigeria has directed banks to restrict access to new credit facilities for large-ticket borrowers with non-performing loans, tightening regulatory controls to protect Nigeria’s financial system.
The directive appears in a circular issued to commercial banks, stating that borrowers whose facilities are classified as non-performing in the Credit Risk Management System (CRMS) or in licensed private credit bureaus will be denied additional credit.
According to the apex bank, the move aims to strengthen prudential compliance and reduce systemic risk within the banking sector.
“Any large-ticket obligor with a non-performing facility recorded in the CRMS and/or any licensed private credit bureau shall not be granted additional credit facilities,” the circular states.
The regulator adds that such borrowers will also be barred from accessing other banking services including letters of credit, performance bonds, bankers’ confirmations and advance payment guarantees.
The CBN defines large-ticket obligors as customers whose combined exposure across banks exceeds the Single Obligor Limit (SOL) and poses a potential threat to the financial stability of the system.
To reduce risk exposure, the bank instructs financial institutions to secure additional realisable collateral from affected borrowers where necessary.
Officials say the directive reinforces an earlier policy introduced in June 2014 that prohibits loan defaulters from accessing further credit within Nigeria’s banking system.
The apex bank notes that the updated directive will ensure consistency in credit monitoring and discourage loan defaults among high-value borrowers.
Banking analysts say the new rule signals the regulator’s continued effort to strengthen credit discipline and protect depositors’ funds in Nigeria’s financial sector.
About the Author
Korede Abdullah 
Hussaini Ibrahim 
