The Central Bank of Nigeria (CBN) has officially restricted banking services for “chronic defaulters” and large-ticket obligors with non-performing loans.
Following comments made by CBN Governor Olayemi Cardoso at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum in Abuja, the central bank released a policy statement on Wednesday in an effort to impose credit discipline and protect the country’s financial system.
The Governor stated unequivocally that delinquent borrowers are no longer subject to regulatory forbearance.
He underlined that the bank is taking a more assertive approach to corporate governance in order to safeguard the N4.61 trillion in fresh capital that the banking industry has lately drawn from chronic misuse.
“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,” the Governor stated.
The new directive particularly targets “large-ticket obligors”, individuals or entities with significant outstanding debts classified as non-performing in the Credit Risk Management System. Under the new rules, these defaulters will be barred from accessing not only fresh credit but also essential contingent liabilities and trade instruments.
“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 statement read.
The CBN claims that the action is intended to foster a “culture of repayment,” which has previously been absent among well-known borrowers. The regulator hopes to stop “credit jumping,” which is the habit of defaulters switching banks in order to accrue additional debt, by restricting access to securities like performance bonds and letters of credit.
Cardoso reiterated the apex bank’s unwavering commitment to traditional monetary policy in addition to the assault on debtors. This strategy shifts away from unconventional measures to boost trust in the naira and instead emphasises price stability and the use of conventional tools to anchor inflation expectations.
“The CBN remains firmly anchored in orthodox monetary policy, focused on restoring price stability, strengthening policy credibility, and anchoring expectations through discipline and consistency,” the statement concluded.
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