By Our Correspondent
National News – The Central Bank of Nigeria (CBN) has restricted banking services for chronic loan defaulters and major borrowers with non-performing loans, in a decisive move aimed at strengthening credit discipline and protecting the country’s financial system.
The directive was announced on Wednesday in Abuja by the CBN Governor, Olayemi Cardoso, during the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum, where he revealed that the apex bank has ended years of regulatory leniency toward delinquent borrowers.
The policy specifically targets large-ticket obligors — individuals and corporate entities owing significant debts that have been classified as non-performing loans under the Credit Risk Management System.
According to the CBN, these borrowers will no longer be able to access fresh credit facilities, trade instruments, or contingent liabilities such as letters of credit and performance bonds until their outstanding debts are resolved.
Cardoso explained that the action was taken to protect the N4.61 trillion in new capital recently raised by the Nigerian banking sector and to prevent abuse of the financial system by borrowers who repeatedly default on repayment obligations.
He stated that the CBN’s corporate governance policy now operates under a zero-tolerance framework, stressing that the era of regulatory forbearance has ended.
The apex bank, he added, is strengthening supervision and tightening compliance standards to improve accountability within the banking industry.
The restriction is also designed to stop a practice known as “credit jumping,” where persistent defaulters move from one bank to another to obtain new loans despite outstanding debts.
By blocking their access to critical banking services, the CBN believes it will encourage responsible borrowing and protect depositors’ funds.
Beyond the crackdown on loan defaulters, the apex bank reaffirmed its commitment to orthodox monetary policy, focusing on price stability, inflation control, and restoring confidence in the Nigerian currency.
For years, Nigeria’s banking industry has struggled with large borrowers who default on massive loans, sometimes running into billions of naira.
The CBN says the latest measure aims to enforce repayment culture, reduce financial system risks, and strengthen the stability of the banking sector.
