The Central Bank of Nigeria (CBN) is cracking down on “chronic defaulters” and major borrowers with non-performing loans, restricting their access to banking services.
This move aims to strengthen credit discipline and protect Nigeria’s financial system.
CBN Governor Olayemi Cardoso announced this policy at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum in Abuja, emphasizing a shift towards orthodox monetary policy and zero tolerance for governance violations.
Cardoso declared that the period of regulatory leniency toward defaulting borrowers has come to an end.
He stressed that the CBN is adopting a stricter approach to corporate governance to safeguard the N4.61tn in fresh capital recently injected into the banking sector from 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 policy is aimed specifically at “large-ticket obligors” — individuals or organisations with substantial unpaid debts recorded as non-performing in the Credit Risk Management System. Under the new framework, such defaulters will be denied access to fresh loans as well as key financial instruments, including contingent liabilities and trade facilities.
“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 explained that the measure is intended to promote a stronger repayment culture among prominent borrowers. By restricting access to instruments like letters of credit and performance bonds, the regulator seeks to eliminate “credit jumping”, where defaulters move between banks to accumulate additional debt.
“By curbing access to banking services for chronic defaulters, we are reinforcing the culture of repayment, protecting depositors, and safeguarding the stability of the financial system,” the apex bank added.
In addition to the action against defaulters, Cardoso reiterated the bank’s commitment to orthodox monetary policy. This strategy focuses on maintaining price stability and relying on conventional monetary tools to manage inflation, marking a shift away from unconventional interventions aimed at rebuilding confidence in the naira.
“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.
