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CBN Clamps Down on Loan Defaulters, Bars Chronic Borrowers from Banking Services

Published by Samuel Ayomide on March 27th, 2026.

The Central Bank of Nigeria (CBN) has taken a firm stance against “chronic defaulters” and large-scale borrowers with non-performing loans, restricting their access to banking services in a bid to strengthen credit discipline and protect the financial system.

The directive, issued in a policy statement on Wednesday, follows remarks by CBN Governor Olayemi Cardoso at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum in Abuja. The governor stressed that the era of leniency toward delinquent borrowers is over.

“Our stance on corporate governance is clear: zero tolerance for violations. By ending years of regulatory forbearance, we are reinforcing accountability, tightening supervision, and elevating compliance standards across the sector,” Cardoso said, according to BusinessDay.

The new policy specifically targets “large-ticket obligors,” defined as individuals or entities with significant outstanding debts classified as non-performing under the Credit Risk Management System. These defaulters will now be barred not only from accessing new loans but also from critical banking instruments such as letters of credit, trade facilities, and performance guarantees.

The CBN said the measure is aimed at cultivating a stronger culture of repayment among high-profile borrowers, who have historically used multiple banks to avoid debt obligations. The Punch reported that the apex bank hopes the crackdown will curb the practice of “credit hopping,” where borrowers shift liabilities between banks to accumulate more debt.

“By curbing access to banking services for chronic defaulters, we are protecting depositors and safeguarding the stability of the financial system,” the statement said.

Beyond tackling delinquent borrowers, Cardoso reaffirmed the CBN’s commitment to orthodox monetary policy, prioritising price stability and traditional policy tools over unconventional interventions. “Our focus is on restoring price stability, strengthening policy credibility, and anchoring expectations through discipline and consistency,” he added.

Financial analysts told Nairametrics that the move signals a new era of accountability in Nigeria’s banking sector, where previously, non-performing loans from influential individuals and corporations posed significant risks to liquidity and public confidence.

Under this policy, defaulters are expected to regularise their accounts before regaining access to banking services, marking a decisive shift toward a more disciplined financial environment under Governor Cardoso’s leadership.