The Central Bank of Nigeria (CBN) has introduced tough new measures targeting chronic loan defaulters, especially individuals and companies with large unpaid debts.
The directive, announced after remarks by CBN Governor Olayemi Cardoso at a high-level financial forum in Abuja, signals a shift toward stricter financial discipline and accountability within the banking sector.
According to the apex bank, borrowers with non-performing loans—particularly high-value debtors—will now face restrictions on key banking services. This includes access to fresh loans, trade facilities, and other financial instruments.
Cardoso made it clear that the era of leniency toward defaulting borrowers is over, stressing that the bank is adopting a zero-tolerance approach to protect the trillions of naira recently injected into the banking system.
The policy is also aimed at stopping the practice of “credit jumping,” where defaulters move between banks to secure new loans without repaying existing ones.
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CBN officials say the move will help build a stronger repayment culture, protect depositors’ funds, and ensure the stability of Nigeria’s financial system.
In addition, the bank reaffirmed its commitment to a more traditional monetary policy approach focused on controlling inflation, stabilising the naira, and restoring confidence in the economy.
For years, large unpaid loans have posed a major risk to Nigeria’s banking sector. With this new policy, the CBN is taking a firmer stand to curb abuse and enforce financial responsibility among borrowers.
