The Central Bank of Nigeria (CBN) has directed commercial banks across the country to prevent loan defaulters from accessing additional credit facilities.

The directive, which is primarily aimed at large-ticket borrowers, was communicated to banks in a circular issued on Monday.

The latest instruction comes less than a week after the apex bank asked financial institutions to conduct stress tests. However, it remains unclear whether the two directives are related or what may have prompted the new order. The CBN noted that the move aligns with its mandate to safeguard Nigeria’s financial system.

According to the circular, the measure is intended to strengthen financial stability, protect depositors, and improve regulatory compliance within the banking sector.

The CBN stated that large-ticket borrowers with non-performing loans recorded in the Credit Risk Management System (CRMS) or any licensed private credit bureau will no longer be eligible for additional credit facilities. These facilities include loans and other forms of direct credit.

The apex bank further instructed that such borrowers should also be denied other banking services and contingent liabilities, including bankers’ confirmations, letters of credit, performance bonds, and advance payment guarantees.