Top financial institutions in Nigeria have been directed by the Central Bank of Nigeria to get borrowers reports from credit bureaux in order to grant loans.
In the directive, the apex bank also stated that credit bureaux will be directed in accordance with the Credit Reporting Act of 2017 and the National Credit Reporting System Regulation of 2019.
This latest guideline was contained in CBN’s report on ‘Monetary, credit, foreign trade, and exchange policy guidelines for fiscal years 2020/2021’.
The report read, “Obtain credit reports from at least two licensed credit bureaux in addition to the CBN CRMS before granting any new credit facility, or when reviewing, renewing or restructuring an existing facility;
“Obtain credit reports for quarterly credit reviews on all existing facilities from at least two licensed credit bureaux;
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“Upload loan data on all its existing credit customers to credit bureaux with which it has executed data exchange agreements.”
According to the report, banks should provide updates on any data supplied to credit bureaus on a monthly basis.
For a more centralised system, CBN also stated that all banks should request identified data controllers to better the credit structure.
These new guidelines will in no way affect the existing precautionary measures in place that preclude systemic issues.
