By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has moved to tighten credit discipline across the banking sector, directing all financial institutions to deny additional loans and banking facilities to large borrowers whose existing loan obligations are classified as non-performing.

The directive, issued in a circular dated March 12, 2026, was signed by Mrs Olubukola Akinwunmi, Director of Banking Supervision, and addressed to all deposit money banks operating in the country.

Under the new policy, any borrower whose loan facility is recorded as non-performing in the Credit Risk Management System (CRMS), the CBN’s centralised credit database, or flagged by any licensed private credit bureau, will be immediately ineligible for new credit.

The measure takes effect without transition, applying across all banks simultaneously.

The apex bank’s restrictions extend beyond direct lending. Affected borrowers will also be denied access to contingent banking facilities, including bankers’ confirmations, letters of credit, performance bonds, and advance payment guarantees, instruments commonly used in trade finance and large-scale commercial transactions.

Banks have additionally been directed to obtain further realisable collateral from affected obligors to adequately secure their existing exposures.

The apex bank did not specify a timeline within which this additional collateral must be obtained.

The CBN defines large-ticket obligors as borrowers whose combined exposures across all banks exceed the Single Obligor Limit, or whose outstanding obligations materially affect a bank’s Capital Adequacy Ratio (CAR) or otherwise pose systemic risks to the broader financial system.

The policy is grounded in Clause 3.2(d) of the Prudential Guidelines for Deposit Money Banks.

The identification of such obligors will be based on data captured in the CRMS and reports from licensed private credit bureaus, according to the circular.

In issuing the directive, the CBN cited the heightened risk that large non-performing obligors pose to individual banks and the wider financial system.

The regulator stated that the new framework is designed to limit contagion risks and reinforce responsible lending practices across the sector.

The move reflects a broader regulatory effort to address the rise in non-performing loans (NPLs) within Nigeria’s banking sector and to ensure that institutions with significant credit exposures to distressed borrowers are not further endangered by extending new facilities to the same counterparties.

Compliance is expected from all deposit money banks with immediate effect.

The CBN did not outline specific sanctions for non-compliance in the circular, though supervisory penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020 would ordinarily apply.

By Aduragbemi Omiyale

The presidential candidate of the Labour Party (LP) in the 2023 general elections, Mr Peter Obi, has blamed the federal government for the high energy costs in Nigeria.

In a post, the former Anambra State Governor said if the central government, led by President Bola Tinubu, had planned for the future, Nigerians would not be paying through their nose for premium motor spirit (PMS), otherwise known as petrol, and Automotive Gas Oil (AGO), also known as diesel.

Disruption in the supply of crude oil on the global market has caused consumers to pay more for petrol and diesel in the country.

The United States and Israel waged war against Iran, killing its Supreme Leader, Ayatollah Ali Khamenei, about two weeks ago in airstrikes.

This has triggered tension in the Middle East, with Iran firing missiles at its neighbours, and closing the Strait of Hormuz, a small water path between Iran and Oman, where one-fifth of global crude oil supply passes through.

Before the crisis, PMS was selling at N835 per litre and crude oil was below $90 per barrel. But oil rose above $100 per barrel, causing the price of petrol in Nigeria to hit over N1,200 per litre.

Reacting to the development, Mr Obi said Nigeria felt the shock despite not being attacked because the government failed to plan.

“Many people wonder why any adverse development in the global economy quickly impacts Nigeria. A recent example is the tension involving Iran, which led to an increase in global oil prices and, subsequently, a rise in petroleum prices in Nigeria.

“A few weeks ago, petrol was selling for less than N1,000 per litre, but today it costs over N1,200 per litre. Diesel, which was also priced below N1,000 per litre, is now over N1,500 per litre. These rapid increases illustrate how quickly external shocks can affect the Nigerian economy.

“The reason for this is straightforward: most countries, whether they are oil-producing or non-oil-producing, maintain strategic petroleum reserves to cushion against supply or price shocks. This means that when there is a disruption in the global oil market, they can release part of these reserves to stabilise supply. However, Nigeria lacks such a buffer, so the impact is felt almost immediately.

“The underlying issue is a lack of planning. Countries that engage in planning create buffers against shocks, while those that do not remain vulnerable to them. The old maxim remains true: when a country fails to plan, it has already planned to fail,” he wrote.

Earlier this week, the Minister of Finance, Mr Wale Edun, said the country’s economy was strong enough to absorb external shocks, saying the over 4 per cent growth in the gross domestic product (GDP) in the fourth quarter of last year was a testament to that.

By Adedapo Adesanya

The Senate President, Mr Godswill Akpabio, has announced that the upper chamber will pass the 2026 Appropriation Bill on March 31, following a brief adjournment for the Sallah break.

Speaking before the Senate adjourned plenary, Mr Akpabio said standing committees would continue working during the recess, particularly on ongoing budget defence sessions and coordination with the Senate Committee on Appropriations.

“I hope the Leader will put pressure on the Committee on Appropriations to harmonise the report of the 2026 Appropriation Bill by that date.

“This is so that when we resume, we can try our best to pass the budget without requiring further concurrence or harmonisation.

“Leadership must work together to ensure everything is in order. The House of Representatives has already adjourned to conclude budget processes and will also reconvene on March 31.

“On that day, we hope to pass the national budget in tandem with the Senate.”

Earlier, the Senate Committee on Appropriations had tentatively fixed Tuesday, March 17, for the final consideration and passage of the N58.47 trillion 2026 Appropriation Bill.

To meet the timeline, the committee, at a special session held in January, approved February 2 to 13 for budget defence by Ministries, Departments and Agencies (MDAs) at the committee level.

As part of efforts to ensure an inclusive and transparent process, the committee also scheduled February 9, 2026, for a public hearing on the budget proposal.

President Bola Ahmed Tinubu, in December, presented the N58.47 trillion 2026 budget proposal to a joint session of the National Assembly, outlining the government’s priorities anchored on economic stability, infrastructure expansion, security and social investment.

The budget was hinged on assumptions including oil production of 1.84 million barrels per day, an oil price benchmark of $64.85 per barrel, and an exchange rate assumption of ₦1,400 to the Dollar.

Following the presentation, the Senate passed the appropriation bill for first and second readings, paving the way for detailed consideration by relevant committees.