CBN Issues New Credit Reporting Guidelines for Banks
In a bid to enhance transparency and ensure uniform standards in the banking sector, the Central Bank of Nigeria (CBN) has introduced revised guidelines on credit reporting for commercial banks across the country.
The new policy was communicated through an official circular titled “Additional Guide to the Provision of Information on Credit Printouts”, dated June 13, 2025, and signed by Olubukola A. Akinwunmi, Director of Banking Supervision.
According to the CBN, the updated regulations stem from findings during recent on-site examinations. Inspectors observed discrepancies between credit printouts presented by some banks and their customers’ actual loan documentation and previous audit records. These inconsistencies included unexplained changes in key loan parameters from one review cycle to the next, raising concerns about data integrity and record-keeping practices.
The apex bank referenced its Prudential Guidelines for Deposit Money Banks, issued in July 2010, which outlines standards for credit classification and provisioning. However, the recent audit findings necessitated additional requirements to strengthen regulatory compliance.
Among the key provisions is the requirement that each loan must retain its original contract number throughout its lifecycle. If a contract number disappears from subsequent credit reports without documented evidence of repayment, the CBN will consider the loan written off and classify it as a loss.
Furthermore, banks must not alter the original date a facility was granted, even in cases of restructuring or enhancement. Any modifications must be recorded separately and supported by a written request from the borrower and a revised loan agreement.
Another critical area addressed involves repayment structures. The use of “bullet” or “yearly” repayment plans must be limited to no more than 10% of a bank’s total loan portfolio. Moreover, project-based loans—as defined in Section 20(d) of the Prudential Guidelines—are prohibited from using bullet repayment options, as such facilities should be amortised over the project’s duration.
Loans with terms exceeding 12 months may only be structured with bullet repayments if they are fully backed by liquid assets or supported by a reliable sinking fund maturing on or before the repayment date. Restructuring a facility into a bullet repayment format is only permissible if it was originally issued under that condition.
The CBN emphasised that these enhanced measures aim to standardise credit information, promote responsible lending, and strengthen risk management across the banking sector.
