CBN Bars Loan Defaulters from New Banking Services

The Central Bank of Nigeria (CBN) has implemented a new directive that prohibits loan defaulters from accessing additional banking services and credit. This decision, communicated in a letter dated March 12, 2026, and signed by the Director of Banking Supervision, Olubukola Akinwunmi, is part of measures to strengthen credit discipline within the banking sector.

According to the report by Nairametrics, borrowers whose loan facilities are classified as non-performing will no longer be eligible to obtain additional credit from licensed private credit bureaus. The CBN's measures are designed to mitigate the risks posed by large borrowers whose defaults threaten the financial system's stability.

Financial institutions are required to restrict further credit access to these large obligors immediately. The directive reinforces an earlier circular issued in June 2024, which barred loan defaulters from accessing new credit facilities within the banking system, amid rising concerns over bad loans in the sector.