The Central Bank of Nigeria (CBN) has directed commercial banks across the country to restrict banking services for loan defaulters, particularly individuals and companies classified as large-ticket obligors.
The directive was contained in a circular issued by the apex bank and seen by TheCable on Monday.
According to the circular, banks are expected to prevent such borrowers from accessing additional credit facilities until their outstanding obligations are resolved.
Large-ticket obligors refer to borrowers either individuals or corporate entities who owe substantial amounts of money to financial institutions.
The CBN’s move is aimed at strengthening credit discipline within the banking sector and reducing the risks associated with unpaid large-scale loans.
Further details on how the directive will be implemented by banks are expected to emerge as financial institutions begin to comply with the new instruction.
