The Central Bank of Nigeria (CBN) has moved to clamp down on major loan defaulters by restricting their access to fresh credit and key banking services across the financial system.

In a directive issued to commercial banks, the apex regulator ordered that borrowers with non-performing loans—especially large-ticket obligors—be denied additional credit facilities. 

The policy targets individuals and companies with significant outstanding debts that could pose risks to the stability of the banking sector. Such borrowers will also be barred from accessing other financial instruments, including letters of credit, performance bonds, and similar banking guarantees. 

According to the CBN, any loan classified as non-performing and recorded in its Credit Risk Management System (CRMS) or by licensed credit bureaus automatically triggers these restrictions. 

Banks have also been instructed to strengthen their risk exposure by demanding additional collateral from affected borrowers to secure existing loans. 

The move is part of broader efforts by the regulator to curb rising bad loans, enforce credit discipline, and safeguard Nigeria’s financial system from systemic risks linked to large unpaid debts. 

The CBN warned that any bank that fails to comply with the directive will face regulatory sanctions under existing financial laws. 

The post CBN Blacklists Top Loan Defaulters, Bars Them from New Credit appeared first on Housing TV Africa.