CBN Clamps Down On Loan Defaulters
The Central Bank of Nigeria has moved to restrict banking services for chronic loan defaulters, targeting individuals and companies with large non-performing loans.
The directive follows comments by CBN Governor Olayemi Cardoso in Abuja.
Under the new policy, affected borrowers—often referred to as large-ticket obligors—will no longer have access to fresh credit or key banking tools like letters of credit and guarantees.
The move is aimed at stopping the practice of defaulters moving between banks to take on more debt without repayment.
The apex bank said the decision is part of efforts to enforce discipline in the financial system and protect depositors’ funds. It also comes as banks strengthen their capital base, with authorities keen to prevent misuse of funds.
Cardoso stressed that the era of leniency for defaulting borrowers is over, adding that stricter supervision and compliance rules are now in place.
The policy is expected to push borrowers toward repayment and reduce risks in the banking sector.
The CBN also reaffirmed its focus on traditional monetary policy, aimed at controlling inflation and restoring confidence in the economy.
