If you’ve been around lending in Nigeria for a while, you already know that the biggest enemy is not always the person who cannot pay back. It is the person who can pay back but chooses not to. And unfortunately, that is the majority. Out of every 100 borrowers, maybe 95 actually have the money but still won’t repay. Why? Because there are no consequences. And the reason there are no consequences is because reporting to credit bureaus has always been one of the hardest things for lenders to do.
It sounds simple on paper. You lend money, and if someone defaults, you report them to a credit bureau so the next lender will think twice before giving them another loan. In reality, it is far from simple. Signing up with any of the credit bureaus in Nigeria costs a lot. In fact, each one could take about hundreds of thousands just to get you registered, and that is before you start dealing with the technical side of things. Even when you manage to register, you’re expected to keep reporting monthly. It is a discipline that many lenders just don’t have the structure or the tech to support.
The consequence is predictable. Borrowers move freely from one lender to another, collecting loans and vanishing. The Central Bank of Nigeria mandates banks to use at least two bureaus, but there are three in total. Most lenders outside the big banks rarely use more than one, if any at all. And if you’re not reporting everywhere, then there will always be blind spots in the system where bad borrowers can hide.
This has been the reality for years. And it is one of the reasons why lending in Nigeria has been harder than it should be.
Why the bureaus matter more than ever
When people talk about fixing lending in Nigeria, the conversation always circles back to accountability. Lending only works when borrowers know that if they take a loan and refuse to pay, there will be a consequence that follows them to the next lender. That is exactly what credit reporting is meant to do. It creates a memory for the system, one that rewards good borrowers and makes it harder for bad borrowers to keep moving around undetected.
In Nigeria, two names stand out when it comes to credit reporting: CreditRegistry and CreditReference Company (CRC). These bureaus have been quietly holding the line for years, putting in the work to build infrastructure that can track borrower behavior and protect lenders. The problem has never been that the bureaus are not doing their job. It has always been that getting lenders to participate fully is a long, complicated, and expensive process. From the high registration costs to the discipline of sending monthly reports, many lenders have simply not been able to keep up.
What this means is that the system remains patchy. Some lenders report here and there, others don’t report at all, and borrowers quickly figure out where the gaps are. They take loans from one side, vanish, and go to the next lender who has no visibility of their history. The bureaus have always been willing to close these gaps, but lenders often stop halfway because of the barriers in their way.
Now imagine if all those barriers could be removed. Imagine a system where reporting no longer feels like a mountain to climb, where the cost, the setup, and the technology are no longer obstacles. That is the kind of shift that changes lending from guesswork into a more reliable business.
Related read: 5 issues that lenders have with Nigerian credit bureaus
Lendsqr steps in
At Lendsqr, we knew the biggest challenge was not that lenders didn’t want to report. Most lenders genuinely understand why credit reporting is important. The real issue has always been that the challenges in front of them are too many. So we sat down with CreditRegistry and CRC to ask a simple question: how can we remove the obstacles so lenders can focus on lending while still keeping the system accountable?
Their response was impressive. Both bureaus understood what was at stake and agreed to put the wider ecosystem ahead of everything else. Together, we reached an agreement that gives every Lendsqr lender direct access to their services without the heavy sign-up fees that usually discourage participation. For lenders, this means CreditRegistry and CRC are now part of their everyday operations the moment they use Lendsqr. No extra cost, no hidden layers of negotiation, and no long onboarding process that drags on for months.
Beyond access, there is another piece that has frustrated lenders for years. Signing up with a bureau is only the beginning. Every month, lenders are expected to submit their reports consistently. When they don’t, the entire purpose of the bureau is weakened because the system loses the data that makes it powerful. Many lenders simply lack the people, the time, or the technology to keep that reporting discipline alive.
This is where the partnership changes things completely. With the technology already embedded in Lendsqr, reporting is no longer an extra task on the lender’s to-do list. Every lender on the platform will have their reports automatically filed with CreditRegistry and CRC, whether they actively think about it or not. That closes the loop in a way that the market has been struggling with for years.
The benefit goes even further. By reporting automatically, lenders on Lendsqr are not only strengthening the ecosystem, they are also staying compliant with CBN requirements and other credit risk regulations. Instead of building costly frameworks from scratch or worrying about penalties, the process happens in the background as part of their normal operations. It is one less burden to carry, and one more step toward making lending in Nigeria more accountable and sustainable.
Related read: 5 issues that lenders have with Nigerian credit bureaus
Why this is a turning point
Every industry that grows in a healthy way has one thing in common: accountability. Lending is no different. Without accountability, lending becomes guesswork, and guesswork in finance almost always ends badly. For years, Nigerian lending has struggled with this problem because so many players were operating outside full credit bureau coverage. Some lenders never registered at all, and those who did often stopped short of consistent reporting. The result was a market where borrowers quickly figured out how to exploit the gaps. Someone could take a loan from one lender, refuse to pay, and then walk across the street to another lender who had no visibility into their history. In some cases, the same borrower would run that play five different times without getting caught.
This is why the partnership between Lendsqr, CreditRegistry and CRC matters so much. This partnership goes beyond being just another feature or tool for lenders, marking a real structural shift in how accountability can finally take root in Nigerian lending. By removing the heavy costs of registration and automating the reporting process, the biggest excuses that lenders once had are now off the table. It is no longer too expensive, too complicated, or too demanding. The doors to proper reporting are open, and all a lender has to do is walk through them.
The impact of this also means good borrowers finally start to get the recognition they deserve. A borrower who has consistently paid back their loans will now see that history follows them in a positive way, making it easier for them to access credit in the future. On the other side, those who have built a habit of defaulting will find it harder to jump from one lender to the next without consequence. With one integration into Lendsqr, lenders are protecting themselves and also helping to build a culture where borrowing and repayment are taken seriously.
The people behind the progress
Partnerships like this don’t just appear on their own. They happen because the people leading these institutions choose to make the system better.
At CreditRegistry, Dr. Jameelah Sharrieff-Ayedun understood the frustrations lenders have faced for years and was willing to make it easier for them to join in. On the CRC side, Dr. Ahmed ‘Tunde Popoola also leaned in, looking for ways to lower the barriers that have kept many lenders away. Their decisions show real commitment to fixing the gaps in Nigeria’s credit system.
From the Lendsqr end, Adedeji Olowe has been clear about one thing: credit reporting is central to responsible lending, but it has been far too hard for lenders to do. His role was bringing everyone to the table and making sure this partnership worked for the ecosystem, not just for one side.
As Adedeji puts it, “We’ve always believed credit reporting is the foundation of responsible lending. But it has been one of the hardest things for lenders to do. By working with CreditRegistry and CRC, we’re making it effortless. Now lenders can focus on serving their customers, knowing that accountability is already built in.
Related read: Top 5 Credit Bureaus for lenders in East Africa
What this means for the future
Fixing the lending system in Nigeria has always been a long road, and no single solution will change everything overnight. Still, this partnership moves the industry several steps closer to where it needs to be. It points to a future where credit reporting is no longer optional or difficult, but something every lender can easily take part in.
In that future, borrowers begin to see that how they handle loans has lasting consequences, while lenders of all sizes can give out credit with more confidence because they know there is a structure that protects them. That level of trust and accountability has been missing for too long.The encouraging part is that this is no longer something lenders have to wait years for. With CreditRegistry and CRC now working with Lendsqr, the shift has already started. For lenders on the platform, the reality of better reporting and stronger accountability is already here. Book a demo with us today.
