The immediate past President of the Chartered Institute of Bankers of Nigeria, Dr Ken Opara, has called for the creation of a specialised court that will handle disputes related to credit access and lending in Nigeria. Opara, who is the Executive Director for Lagos and the South-West at Fidelity Bank Plc, made the suggestion during a presentation at the Lagos Business School. His paper, titled “Contemporary Issues in Credit and Lending Management”, focused on how Nigeria can strengthen its credit system at a time when lending to the private sector is expanding.
Data from the Central Bank of Nigeria showed that credit to the private sector rose by 2.6 per cent to N74.41tn in October 2025, compared to N72.53tn recorded in September. This growth reflects a renewed appetite among banks to support private firms despite economic pressures. Opara said a stronger legal framework is essential for Nigeria to sustain this momentum and solve long-standing issues affecting credit recovery and enforcement.
Opara explained that Nigeria needs “legal and judicial reforms for credit enforcement”, stressing that commercial lenders continue to face delays when resolving disputes with defaulting borrowers. According to him, the establishment of a specialised commercial court would fast-track the settlement of loan-related cases and reduce the time lenders spend in traditional courts, which often struggle with heavy caseloads. He said a dedicated court would help simplify proceedings, improve investor confidence, and support long-term growth in the credit sector.
Beyond a special court, the former CIBN president listed several reforms that he believes are necessary for a more efficient lending environment. These include stronger prudential regulation and supervision, better coordination among institutions, improved policy harmonisation across government agencies, and clearer policy support for digital lending platforms. He also called for more training for operators and regulators and urged financial institutions to improve documentation processes for online lending.
Opara stressed the need for Nigeria to strengthen its identity management system by fully linking the Bank Verification Number and National Identification Number. He noted that reliable identity data helps lenders assess risk better and reduce fraud. According to him, modern lenders must also embrace data analytics and artificial intelligence for faster and more accurate credit decisions. He highlighted an example from China, explaining how China Merchant Bank developed a super app that integrates customer information across channels and now serves over 200 million customers. He said Nigeria can learn from advanced markets by investing in technology that enhances decision-making and credit monitoring.
Opara also encouraged policymakers to adopt a long-term credit strategy built on “data, discipline, and development impact”. He said regulators, including the Central Bank of Nigeria, must find a balance between protecting the financial system and supporting credit expansion. According to him, regulation should encourage innovation without stifling growth. He added that academic institutions also have a role to play by designing curricula that reflect the rapid changes in the global credit landscape. These new areas include digital lending, green finance, sustainable banking, and financial inclusion analytics.
In his presentation, Opara noted that deeper cultural issues also affect the lending system. He said a “culture of unwillingness to repay among some debtors” remains a major challenge, adding that a modern lending system requires reliable data, enforceable contracts, and tools that reduce uncertainty for banks. He said recent regulatory reforms have helped to build a stronger foundation for lending in Nigeria, but more work is still needed.
Opara praised the progress made by credit bureaus, noting that they are slowly improving transparency by giving lenders better access to borrower histories and behaviour patterns. He also highlighted the progress of the National Collateral Registry, which now allows movable assets such as generators, farming equipment, and other non-land property to be used as security for loans. This, he said, has expanded lending opportunities for small businesses and individuals who traditionally lacked access to credit.
He further pointed to the Global Standing Instruction policy, which allows banks to recover funds from a borrower’s accounts across all financial institutions when the borrower defaults. He said this policy has introduced a new level of discipline into the system by ensuring that borrowers understand the consequences of defaulting. According to him, “Step by step, the foundations are strengthening, but the journey is far from complete.”
Opara concluded by saying that building a strong credit culture goes beyond enforcing rules. He said the country must build a shared philosophy that encourages responsibility among lenders, regulators, and borrowers. He argued that such a culture will help Nigeria develop a stable, transparent, and inclusive credit system that supports long-term economic growth.
