Tag: Loan defaulters

CBN restricts banking services for chronic loan defaulters

Aminu Imam
CBN restricts loan defaulters

The Central Bank of Nigeria (CBN) has restricted banking services for large-scale loan defaulters, cutting-off their access to fresh credit, letters of credit, performance bonds, and other trade instruments. The move marks a decisive end to years of regulatory forbearance that allowed well-connected borrowers to accumulate debt with little consequence. The CBN issued the directive on Wednesday, following remarks by Governor Olayemi Cardoso at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum in Abuja. It targets “large-ticket obligors” – individuals and corporations carrying significant debts classified as non-performing in…

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CBN blacklists all loan defaulters from banking services

Aminu Imam
CBN blacklists

The Central Bank of Nigeria (CBN) has issued a directive to commercial banks to restrict access to credit facilities for large-ticket obligors who are in default. The CBN announced the development in a circular issued to banks. According to the circular, the restriction aims to promote a sound financial system, protect depositors, and enhance prudential compliance within the banking sector. The circular reads: “In furtherance of its mandate to promote a sound financial system, protect depositors, and enhance prudential compliance within the banking sector, the Central Bank of Nigeria (CBN)…

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