The Central Bank of Nigeria (CBN) has introduced new regulatory measures aimed at strengthening the country’s financial system, giving bank customers greater control over instant payment services while restricting loan defaulters from accessing new credit facilities.
In a circular issued to banks, the apex bank announced new functionalities for Instant Payments (IP), allowing customers to opt in or out of the service and set personal transaction limits for electronic transfers.
The new rules, which will take effect from July 1, 2026, enable bank customers to temporarily or permanently deactivate instant payment services if they choose.
“Customers shall have the option to opt-out of or opt-in to IP service at any time and for any given period. This process shall be subject to Multi-Factor Authentication (MFA) control. Default setting shall be opt-in upon onboarding a new customer,” the CBN stated.
Under the arrangement, customers who opt out will not be able to conduct online instant transfers but can still carry out transactions by visiting their financial institutions physically.
The directive also allows customers to adjust their transaction limits within existing caps of N25 million for individuals and N250 million for corporate customers.
According to the CBN, any request to modify transaction limits will require enhanced due diligence by the financial institution and must be completed through multi-factor authentication to confirm customer consent.
The apex bank said the measure forms part of its efforts to promote financial system stability and establish minimum standards for instant payments across Nigeria’s banking sector.
In a related development, the CBN has also directed commercial banks to restrict loan defaulters, particularly large-ticket obligors, from accessing additional credit facilities.
Large-ticket obligors are borrowers whose outstanding exposures exceed the Single Obligor Limit (SOL) and could pose significant risks to the financial system.
According to the circular, any borrower with a non-performing loan recorded in the Credit Risk Management System (CRMS) or reported by licensed private credit bureaus will be barred from obtaining further credit.
“Any large-ticket obligor with a non-performing facility recorded in the CRMS and/or any licensed private credit bureau shall not be granted additional credit facilities. For the purpose of this restriction, credit facilities include loans and other forms of direct credit,” the directive stated.
The restriction also extends to other banking services, including contingent liabilities such as bankers’ confirmations, letters of credit, performance bonds and advance payment guarantees.
To strengthen risk management, the CBN further instructed financial institutions to obtain additional realizable collateral from such borrowers to adequately secure existing loan exposures.
The regulator explained that the directive reinforces an earlier circular issued on June 30, 2014, which prohibited loan defaulters from accessing further credit within the banking system.
“This is to ensure consistency and effectiveness in curbing credit abuse by large-ticket obligors,” the apex bank said.
The CBN added that it will closely monitor compliance with the directive across the banking sector, warning that institutions that fail to adhere to the rules will face sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020.
The latest directives come as Nigerian banks continue their recapitalisation programme introduced by the CBN in March 2024, which is scheduled to end on March 31.
So far, about 30 banks have met the new minimum capital requirements set by the regulator as part of efforts to strengthen the country’s financial system.