CBN Blacklists Top Loan Defaulters, Bars Them from New Credit

The Central Bank of Nigeria has barred top loan defaulters from accessing new credit facilities and key banking services, in a sweeping move to tighten credit discipline and protect the country’s financial system.

The directive, contained in a circular issued to banks, targets large borrowers with non-performing loans, effectively blacklisting them from further access to credit within the banking system.

According to the apex bank, “any large-ticket obligor with a non-performing facility recorded in the CRMS and/or any licensed private credit bureau shall not be granted additional credit facilities.”

It added that the restriction goes beyond loans, stating that affected borrowers “shall not be granted banking facilities or contingent liabilities such as bankers’ confirmations, letters of credit, performance bonds, or advance payment guarantees.”

The CBN explained that the measure is designed to curb the risks posed by large defaulters whose financial exposure could threaten the stability of the banking system.

The regulator noted that the affected borrowers include individuals or companies whose debts exceed regulatory thresholds or could significantly impact a bank’s capital base, warning that such exposures “pose systemic risk to the financial system.”

As part of the new measures, banks have also been directed to strengthen their risk positions by obtaining additional collateral from affected borrowers to secure existing loan exposures.

The move reinforces earlier regulatory actions aimed at preventing loan defaulters from accumulating fresh debts across multiple banks, amid growing concerns over rising non-performing loans in the sector.

Industry analysts say the policy signals a tougher stance by the apex bank on credit abuse, with lenders now under stricter instructions to enforce compliance and safeguard financial stability.