CREDIT REPORTING ACT, 2017
Act · Finance
Policy date: 2017-01-01
An Act regulates credit reporting in Nigeria and establishes a framework for credit bureaux operations. It targets credit providers, borrowers, and the Central Bank as regulator to improve information sharing. The act aims to reduce lending risks and protect consumer rights.
CREDIT REPORTING ACT, 2017
What Is This Policy?
An Act that regulates credit reporting in Nigeria, establishes a framework for the operation of credit bureaux, and prescribes the rights of consumers in relation to their credit information.
Who Does It Target?
Licensed credit bureaux operating in Nigeria Banks, microfinance banks, and all credit providers Individual borrowers and business entities with credit histories Central Bank of Nigeria as regulator
What Does It Aim to Achieve?
Improve credit information sharing across the financial sector, reduce information asymmetry in lending, protect consumer credit rights, and support responsible lending.
Key Features
Credit Bureau Licensing: Requires all credit bureaux to obtain a licence from the CBN and meet prescribed operational standards. Data Submission Obligation: Requires all financial institutions to submit both positive and negative credit data on borrowers to licensed credit bureaux. Consumer Rights: Entitles every individual to access their credit report free of charge once a year and to dispute inaccurate information. Data Accuracy: Obligates credit bureaux and data furnishers to maintain accurate, up-to-date, and complete credit information.
Current Status
Rollout Stage: Active - multiple licensed credit bureaux are operational Coverage: Nationwide Beneficiaries: Creditworthy individuals, lenders, and the overall financial system Funding: Credit bureau subscription fees; lender compliance costs
How to Access
Credit bureaux: apply for a licence from the CBN Individuals: request free annual credit report from any licensed credit bureau Lenders: must submit credit data as a licence condition Application method: Request credit reports from licensed credit bureaux: CRC Credit Bureau, FirstCentral Credit Bureau, or CreditRegistry.
Important Terms
Negative credit data may be held for a maximum of 5 years Consumers may dispute inaccurate records and demand correction Selling credit data without authorisation is a criminal offence
Impact & Metrics
Improved credit scoring capabilities for Nigerian lenders and millions of Nigerians now have accessible credit histories.
Official Resources
Website: https://www.cbn.gov.ng Contact: Central Bank of Nigeria (CBN)
Legal Framework
The Credit Reporting Act 2017 is the primary legislation governing credit bureaux and credit reporting in Nigeria. It operates under the Central Bank of Nigeria Act 2007, the Banks and Other Financial Institutions Act 2020, and the Data Protection Act 2023 (on data privacy in credit reporting). The Act aligns with the World Bank's Principles for Public Credit Registries and international credit bureau standards from the Association of Consumer Credit Bureaux (ACCB).