Central Bank of Nigeria

Banking Supervision Department
P.M.B. 12194
Tinubu Square, Lagos
Email: bsd@cbn.gov.ng
Website: www.cbn.gov.ng

Reference: BSD/DIR/CON/LAB/019/003
Date: March 12, 2026

LETTER TO ALL BANKS

RESTRICTION OF BANKING SERVICES TO NON-PERFORMING LARGE TICKET OBLIGORS

In furtherance of its mandate to promote a sound financial system, protect depositors, and enhance prudential compliance within the banking sector, the Central Bank of Nigeria (CBN) hereby directs all banks to restrict non-performing large ticket obligors, whose activities pose systemic risk to the financial system, from accessing specified banking services.

Effective immediately, all financial institutions shall:

1. Restrict further credit access:

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

• Advance payment guarantees

2. Strengthen collateral coverage:

Institutions shall obtain additional realisable collateral from such obligors to adequately secure existing exposures.

Definition of Large Ticket Obligors

For the purpose of this directive, large ticket obligors are borrowers whose exposures are as defined under Clause 3.2 (d) of the Prudential Guidelines for Deposit Money Banks in Nigeria 2010, or a customer with a combined exposure across banks, as shown in the Credit Risk Management System (CRMS), and/or as shown in the reports of a licensed private credit bureau, that exceed the Single Obligor Limit (SOL), which materially affect a bank's Capital Adequacy Ratio (CAR), or otherwise pose a systemic risk to the financial system.

Background

This directive reinforces earlier measures, particularly the circular titled "Prohibition of Loan Defaulters from Further Access to Credit Facilities in the Banking System" issued on June 30, 2014 (Ref: BSD/DIR/GEN/LAB/07/015). This is to ensure consistency and effectiveness in curbing credit abuse by large-ticket obligors.

Compliance and Enforcement

CBN will monitor compliance with this directive to ensure consistent implementation across the banking industry. Non-compliance will attract appropriate regulatory sanctions in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.

Please be guided accordingly.

Olubukola A. Akinwunmi, PhD
Director of Banking Supervision