CBN Directs Banks to Restrict Transactions for Defaulters

On March 12, 2026, the Central Bank of Nigeria (CBN), through a circular signed by Director of Bank Supervision Olubukola Akinwunmi, instructed financial institutions to limit further financial access to customers whose loans have already defaulted. The directive specifically targets large-ticket borrowers whose defaults pose significant risks to banks and potentially threaten the wider financial system.

Banks are required to stop granting new credit facilities to these borrowers, which includes any form of direct credit or similar financial arrangements. The CBN explained that this measure affects borrowers classified as non-performing loans within the Credit Risk Management (CRM) system.

Additionally, licensed private credit bureaus will bar access to further credit for these borrowers. The CBN emphasized the need for banks to strengthen their risk management practices and ensure adequate security for existing loan exposures, particularly for those classified as large-ticket obligors, whose total exposure exceeds the single obligor limit.