The Central Bank of Nigeria (CBN) has issued a bombshell directive to all commercial banks, ordering them to immediately blacklist loan defaulters – particularly high-value “large-ticket obligors” – and block access to new credit facilities across the banking sector.
A circular sent to banks and obtained by TheCable on Monday targets individuals and companies owing massive sums, aiming to tackle Nigeria’s growing N2.3 trillion non-performing loan crisis that’s choking bank lending capacity.
Under the new CBN policy, banks must;
- Identify and flag all significant defaulters in their systems
- Share defaulter data industry-wide through credit bureaus
- Deny fresh loans, overdrafts, or any credit products to blacklisted obligors
- Intensify recovery efforts on existing bad debts
More details…