The Central Bank of Nigeria (CBN) has issued fresh directives aimed at enhancing consistency, transparency, and responsible credit management in the country’s banking sector.
In a circular titled “Additional Guide to the Provision of Information on Credit Printouts” dated 13 June 2025, and signed by Olubukola A. Akinwunmi, Director of Banking Supervision, the CBN set out detailed rules for all commercial banks to follow in presenting credit information.
The new requirements follow observations during recent on-site examinations, where discrepancies were discovered between banks’ credit printouts and customer files, as well as inconsistencies with past regulatory examination records. The apex bank noted that several loan parameters were found to shift between examination cycles, raising concerns over data integrity and transparency.
Referencing the existing Prudential Guidelines for Deposit Money Banks in Nigeria (July 2010), which govern the assessment of loan books and provisioning standards, the CBN said the latest directives are necessary to eliminate ambiguities and ensure uniform reporting practices.
Key elements of the new guidelines include the requirement that every loan facility must retain the same contract number throughout its lifecycle. Any contract number missing from subsequent credit reports must be accompanied by verifiable evidence of full repayment. In the absence of such evidence, the facility will be deemed written off and classified as “lost”.
Additionally, the original date of loan issuance must remain fixed, regardless of whether the loan is restructured or enhanced. Restructuring or enhancement actions must be distinctly documented, with banks required to provide written confirmation from the borrower and updated offer terms.
To curb excessive use of certain repayment patterns, the CBN has capped the share of “yearly” and “bullet” repayment structures to a maximum of 10 percent of any bank’s loan portfolio. Project-based loans, as defined in section 20(d) of the Prudential Guidelines, are expressly prohibited from employing bullet repayment structures. These types of facilities, the CBN noted, are expected to be serviced using cash flows generated during the project’s tenure.
Moreover, bullet repayment plans are barred for loans with tenors exceeding 12 months unless such loans are fully collateralised by cash or supported by a sinking fund that matures on or before the loan’s final repayment date. The use of bullet repayments is permissible only in instances where repayment is linked to the sale of the financed asset or supported by an operational sinking fund.
The regulator further stated that no loan should be restructured into a bullet repayment if that repayment style was not part of the original loan agreement.
According to the CBN, these additional rules are intended to strengthen accountability, encourage sound credit risk management practices, and promote confidence in the Nigerian financial system.
