The Central Bank of Nigeria (CBN) has introduced new measures aimed at strengthening the banking system, granting customers more control over instant payment services while restricting loan defaulters from accessing fresh credit.
In a circular to banks, the apex bank announced new functionalities for Instant Payments (IP) that will allow customers to opt in or out of the service and adjust their personal transaction limits.
The new policy will take effect from July 1, 2026.
According to the CBN, customers will be able to temporarily or permanently opt out of instant transfers through their banks, provided the request is authenticated using multi-factor authentication (MFA).
“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 control. Default setting shall be opt-in upon onboarding a new customer,” the circular stated.
Customers who choose to opt out will be unable to carry out instant online transfers but can still perform transactions by visiting their banks.
The directive also allows customers to adjust their transfer limits within the current caps of N25 million for individuals and N250 million for corporate organisations.
The CBN said any request to increase or reduce transaction limits must undergo enhanced due diligence and risk assessment by the financial institution before approval.
The central bank explained that the changes are part of efforts to promote financial stability and improve the safety of Nigeria’s digital payment system.
In a separate directive, the apex bank also ordered commercial banks to block loan defaulters - particularly large-ticket borrowers - from accessing additional credit facilities.
Large-ticket obligors are individuals or companies whose outstanding loans exceed the Single Obligor Limit and pose significant risk to the financial system.
The CBN said any borrower with a non-performing loan recorded in the Credit Risk Management System (CRMS) or reported by licensed private credit bureaus should not be granted further loans or direct credit facilities.
The restriction also covers other banking instruments such as letters of credit, performance bonds, bankers’ confirmations and advance payment guarantees.
The regulator further directed banks to secure additional realizable collateral from such borrowers to adequately cover existing loan exposures.
According to the CBN, the measure reinforces an earlier directive issued in June 2014 that prohibited loan defaulters from accessing further credit in the banking system.
The apex bank warned that it will closely monitor compliance and impose sanctions on any financial institution that fails to implement the directive in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The latest directives come as Nigerian banks continue the recapitalisation exercise announced by the CBN in March 2024, which is expected to conclude by March 31.
About 30 banks have so far met the minimum capital requirements set by the regulator.
Leave a Reply