Nigeria: lending & credit regulation

Regulated

Nigeria lending regulated under BOFIA 2020; CBN supervises banks/MFBs, SEC regulates credit enhancement

Lead regulator:: Central Bank of Nigeria (CBN)
Key law:: Banks and Other Financial Institutions Act (BOFIA) 2020
Last updated:: 2026-07-12

The lending and consumer credit sector in Nigeria is primarily regulated by the Central Bank of Nigeria (CBN) under the Banks and Other Financial Institutions Act (BOFIA) 2020. Licensed entities, including Deposit Money Banks, Microfinance Banks, and Primary Mortgage Banks, must obtain specific licenses to operate and are subject to strict prudential guidelines covering capital, risk management, and consumer protection. The CBN enforces mandatory credit reporting through the Credit Risk Management System (CRMS) and maintains oversight of credit guarantee and mortgage guarantee companies to support sector stability.

Additionally, the Securities and Exchange Commission (SEC) exercises regulatory authority over Credit Enhancement Facility Providers, requiring mandatory registration and adherence to high capital and liquidity standards. This dual-regulatory framework ensures that both traditional lending institutions and specialized credit support entities operate within a robust legal and supervisory environment aimed at financial inclusion and systemic resilience.

Who regulates

Central Bank of Nigeria (CBN)
Primary supervisor for Deposit Money Banks, Microfinance Banks, Primary Mortgage Banks, and other financial institutions involved in lending.
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Securities and Exchange Commission (SEC)
Regulator for Credit Enhancement Facility Providers, requiring registration and compliance with prudential standards.
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Core laws & rules

Banks and Other Financial Institutions Act (BOFIA) (2020)
The primary legislation governing the licensing, operation, and supervision of banks and other financial institutions in Nigeria, including requirements for statutory returns and corporate governance.
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Licensing & registration

Deposit Money Banks, Microfinance Banks, Primary Mortgage Banks
Entities must obtain licenses from the CBN to operate. They are subject to prudential guidelines covering permissible activities, corporate governance, and financial reporting.
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Credit Enhancement Facility Providers
Mandatory registration with the SEC is required. Providers must maintain a minimum paid-up capital of N10 billion and an 85% liquid asset ratio. Capital: N10 billion
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Restrictions & warnings

The CBN mandates that all Other Financial Institutions enroll in the Credit Risk Management System (CRMS) and submit credit data before disbursement to ensure comprehensive credit reporting.
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Deposit Money Banks are subject to Loan-to-Deposit Ratio (LDR) limits, which were adjusted to 50% in 2024 as part of monetary tightening measures to combat inflation.
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Direction of travel

Regulatory focus remains on strengthening financial inclusion, improving credit culture through mechanisms like the Global Standing Instruction, and enhancing cybersecurity frameworks for financial institutions.
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Sources

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This guide is compiled automatically from 10 primary-source documents published by Nigeria's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.