No More Bank Credit For Loan Defaulters Of Over N500m

The Central Bank of Nigeria (CBN) has warned that no deposit money bank (DMB) should without its prior approval grant facilities to potential borrowers that are in default of any existing facilities to the tune of N500 million and above.

The apex bank also warned development banks and banks in liquidation not to grant facilities of N250 million and above to the same set of bank customers.

The central bank stated this yesterday in a letter signed by its Director of Banking Supervision, Mrs. Tokunbo Martins, a copy of which was posted on its website.

The letter addressed to all DMBs, development finance institutions (DFIs) and the Asset Management Corporation of Nigeria (AMCON) was titled: “Prohibition of Loan Defaulters from Further Access to Credit Facilities in the Nigerian Banking System.”


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