CBN chronic defaulters restricted from banking services to enforce repayment and safeguard Nigeria’s financial system
The Central Bank of Nigeria has restricted banking services for chronic defaulters and large-ticket obligors with non-performing loans, following a policy statement issued on Wednesday.
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CBN Governor Olayemi Cardoso made the announcement at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum in Abuja, signalling a firm crackdown on delinquent borrowers.
Governor Cardoso emphasised that regulatory forbearance for high-profile defaulters has ended, highlighting a new focus on corporate governance and accountability to protect the N4.61tn in fresh capital recently attracted by the banking sector.
“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 specifically targets individuals or entities with significant non-performing loans recorded in the Credit Risk Management System.
These defaulters will be barred from accessing fresh credit, contingent liabilities, and trade instruments, including letters of credit and performance bonds.
“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 CBN said.
The apex bank described the move as a means to instil a culture of repayment, prevent “credit jumping” between banks, and protect depositors while safeguarding the stability of Nigeria’s financial system.
Cardoso also reaffirmed the CBN’s commitment to orthodox monetary policy, prioritising price stability and credible policy measures to strengthen confidence in the naira, while moving away from unconventional interventions.
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The policy shift reflects the CBN’s broader goal under Governor Cardoso to address longstanding issues with wealthy individuals and large corporations that default on substantial loans, threatening bank liquidity and ordinary citizens’ deposits.
