The Central Bank of Nigeria (CBN) has moved decisively against chronic loan defaulters, announcing sweeping restrictions on banking services for individuals and companies with non-performing loans.

The directive, unveiled on Wednesday, signals a major policy shift aimed at enforcing credit discipline and strengthening the stability of Nigeria’s financial system.

Speaking at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum in Abuja, CBN Governor Olayemi Cardoso declared an end to regulatory leniency for delinquent borrowers, stressing that the apex bank would no longer tolerate persistent defaults.

According to the CBN, the new measures specifically target “large-ticket obligors” — high-value borrowers whose debts have been classified as non-performing within the Credit Risk Management System.

Under the policy, affected defaulters will be denied access not only to fresh loans but also to critical banking instruments such as letters of credit, performance bonds, and other trade-related facilities.

Cardoso said the move was necessary to protect the N4.61 trillion in new capital recently injected into the banking sector and to prevent systemic abuse.

“Our stance on corporate governance is unequivocal: zero tolerance for violations,” he stated. “By ending years of regulatory forbearance, we have reinforced accountability, tightened supervision, and elevated compliance standards across the sector.”

The apex bank explained that the restrictions are designed to curb “credit jumping,” a practice where debtors move between banks to secure new loans without repaying existing obligations.

By cutting off access to key banking services, the CBN aims to instil a stronger culture of repayment, safeguard depositors’ funds, and enhance overall financial system integrity.

“For years, chronic defaulters have posed significant risks to the banking sector. This action reinforces accountability and ensures that borrowers meet their obligations,” the statement added.

In addition to the crackdown, the CBN reaffirmed its commitment to orthodox monetary policy, signalling a shift away from unconventional interventions toward a stronger focus on price stability and policy credibility.

The latest move underscores the regulator’s broader reform agenda under Cardoso, as it seeks to restore investor confidence, stabilise the naira, and reposition Nigeria’s banking sector for sustainable growth.