The Central Bank of Nigeria (CBN) is tightening the screws on loan defaulters across Nigeria’s banking system.
Under new regulatory guidelines, individuals who fail to repay bank loans risk being blocked from certain financial activities, especially operating Point-of-Sale (PoS) and agent banking services. Nigerian financial media report that anyone with a non-performing loan within the last 12 months may be disqualified from becoming or continuing as a PoS agent. Sources include reporting by National Economy and Nigerian Tribune on the updated rules.
To enforce the directive, banks must check applicants through licensed credit bureaus before approving them for agent banking roles. The verification process is intended to ensure that people with outstanding bank debts cannot easily operate financial service outlets while still owing lenders.
The policy also excludes individuals whose Bank Verification Numbers (BVNs) are watch-listed, as well as those with records of bankruptcy, fraud convictions, or other financial misconduct, from participating in agent banking operations.
Editorial Note
The measure signals a stronger push by the Central Bank to improve loan repayment discipline. By linking access to parts of the financial system with credit history, regulators aim to reduce defaults and strengthen confidence in Nigeria’s banking sector.
