In a bid to limit the risks posed by large-ticket obligors whose loan defaults could threaten the stability of the banking sector, the Central Bank of Nigeria (CBN) has directed commercial banks to restrict access to certain banking services for large-ticket borrowers with non-performing loans.
Top Society reports that a large-ticket obligor is a borrower (an individual or company) that owes a very large amount of money to a bank.
In a letter sent to all banks dated March 12, 2026, and signed by the Director of Banking Supervision, Olubukola Akinwunmi, banks were also directed to obtain additional realisable collateral from the affected borrowers to adequately secure their existing exposures.
The CBN warned that noncompliance would attract appropriate regulatory sanctions in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
“Effective immediately, all financial institutions shall: Restrict further credit access: Any large-ticket obligor with a nonperforming facility recorded in the CRMS and/or any licensed private credit bureau shall not be granted additional credit facilities.
“For the purpose of this restriction, credit facilities include loans and other forms of direct credit.
“In addition, such obligors shall not be granted banking facilities or contingent liabilities such as bankers’ confirmations, letters of credit, performance bonds, or advance payment guarantees,” the apex bank stated.
The circular read further, “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. For the purpose of this restriction, credit facilities include loans and other forms of direct credit.
“In addition, such obligors shall not be granted banking facilities or contingent liabilities such as bankers’ confirmations, letters of credit, performance bonds, or advance payment guarantees.”
CBN maintained that these restrictions will apply to borrowers whose exposures meet the definition of large-ticket obligors as outlined in Clause 3.2(d) of the Prudential Guidelines for Deposit Money Banks.
According to the regulator, borrowers whose loan facilities are classified as non-performing and recorded in the Credit Risk Management System (CRMS) or any licensed private credit bureau will no longer be eligible to access additional credit facilities.
The regulator said it will monitor compliance with the directive to ensure consistent implementation across the banking industry.
