How to Build and Maintain a Healthy Credit Score in Nigeria
When A Late ₦20,000 Loan Kills Your Bank Loan: Why Your Credit Score Now Matters More in Nigeria (How to Build and Maintain a Healthy Credit Score in Nigeria)
“It’s early 2025, Chinedu has just repaid a loan from an FCCPC verified app, but he was 10 days late.
Now it’s mid 2025, July ending , to be precise and Chinedu needs just ₦300,000 to expand his Lagos “pop-up” boutique. He applied for a bank loan and was denied. Why? Chinedu’s credit score had fallen because of the 10 days delay in repayment of the mobile app loan. The delay cost Chinedu more than cash, haunted his borrowing profile and killed his expansion dreams.”
With the new financial laws 2025 came with in Nigeria, your credit score has become an entry ticket to finance, housing, and more.
With fintech booming, regulators tightening rules, and new government credit schemes rolling out, building and keeping a good credit score is a must.
This guide gives you a roadmap on what it means, how it’s built, how to stay in good standing and if damaged— how to repair or replace it.
What Is a Credit Score in Nigeria
A credit score is a number (usually 300–850) that shows your likelihood of repaying borrowed money. Three organizations are in charge of this data in Nigeria, collecting your loan and default histories, repayment habits, sometimes telecom and utility repayment histories (yes, your airtime loans , your unpaid electricity bills) and other important data.
- CRC Credit Bureau
- FirstCentral Credit Bureau
- CreditRegistry
Score ranges (approximate, illustrative):
| Score band | Label | What lenders think |
| 750–850 | Excellent | You’re a safe bet; you get lowest rates |
| 700–749 | Good | Probably approved with decent terms |
| 650–699 | Fair | Some caution; you may pay higher rates |
| 550–649 | Weak | You’ll struggle to get credit |
| < 550 | Poor | You may be rejected or asked for guarantors |
Note: These exact bands vary by bureau as they do not publicly publish their full formulas.
Why it matters in 2025 Nigeria:
- Digital lenders, installment payment or “buy-now-pay-later services”, telecoms, and utilities check your credit profile to see if you’re eligible.
- Under new Digital Lending Regulations 2025, lenders must now report your repayment status (good or bad) to credit bureaus according to the Digital, Electronic, Online or Non-traditional Consumer Lending Regulations (DEON, 2025)
- The government launched CREDICORP (Nigerian Consumer Credit Corporation) to expand access to consumer credit loans and hereby credit scores (Wikipedia,2025).
- Regulators have begun fining digital lenders for unethical practices from up to ₦50 million for individuals to ₦100 million for companies (DEON, 2025).
Digital lenders are beginning to sit very tight because of these shifts and your credit score is now in the spotlight more than ever.
What Drives Your Credit Score
No bureau publishes a perfect formula. But inferences and publicly shared patterns suggest these weightings approximations:
| Factor | Approx % weight | What it means in practice |
| Payment history | ~ 35% | On-time vs late payments |
| Credit used or amount owed | ~ 30% | How much of your available credit you’re using |
| Length of credit history | ~ 15% | How long you’ve had credit or loan accounts |
| Mix of credit types/ different kinds of credits. | ~ 10% | Loans, credit cards, cooperative credit |
| New credit inquiries | ~ 10% | How many new loan applications you make |
- Some data (utility, rent, telecom) may or may not be reported depending on region or provider, but these data — like telecom repayment, mobile money, digital wallet usage are becoming more important.
- Lenders may weigh delinquency harshly and one default can drag your score for years.
What New Regulations Mean for You
Digital Lending Regulations 2025 (aka DEON )
These came into force on the 24th of July, 2025 as the most aggressive regulatory step so far in Nigeria’s consumer finance space. (Below is a link to the new DEON regulations by the FCCPC)
- All digital lenders (online, app, nontraditional) must register with FCCPC within 90 days
- They must submit a Compliance Audit Report and Data Protection Impact Assessment (DPIA).
- Approval fee may reach ₦1,000,000 for two software applications; more apps cost extra.
- Licensed microfinance banks may be exempted or require waiver.
- Partnerships between lenders and third parties must be approved.
- Borrowers must be shown clear, accessible terms before accepting — hence, no more “mago mago”
- Harassment, abuse, coercive recovery tactics, publishing borrower contacts without consent has been banned.
- Fines range upward of ₦50–100 million or 1% of turnover for violations.
- Under the Nigeria Data Protection Act / NDPR / NDPC, lenders must treat your data responsibly: collect only what’s necessary, store securely, and avoid unauthorized access.
How to Build a Solid Credit Score in Nigeria
You may have no track record. That’s okay. Use these steps to start ascending:
1. Start with a “safe loan”
- Borrow small and repay cleanly before time lapses.
2. Pay “everything” on time
- including subscriptions, telecom or postpaid bills, utility bills.
3. Keep your credit utilization low
- If you have a ₦100,000 credit line, try to use ≤ ₦30,000 regularly.
4. Keep old accounts
- If you paid off a loan or card, leave it open if it doesn’t charge high fees) as they boost your “age of credit” metric.
5. Add other data (if possible)
- Ask your landlord or utility provider if credits like your rent, electricity can also be linked.
- Use a credit or overdraft facility sensibly
- If your bank offers an overdraft or credit card, use it for small purchases and repay as soon as you can.
7. Don’t apply to too many lenders in short time.
8. Monitor your credit report regularly
- You can request your free credit report once per year from bureaus.
- Look for errors, fraudulent entries.
- Dispute wrong entries via bureau portals.
9. If you can’t borrow alone, use someone with better credit as a guarantor.
If your score is already damaged:
- Negotiate with your lender — a payment plan or settlement (with “no negative reporting” in return).
- Avoid new debt
- Be consistent — over 1-2 years of positive records will outweigh past mistakes.
- Check for lingering negative entries and dispute any error.
- Keep a savings buffer to avoid borrowing under stress, and avoid unregistered loan apps which may report defaults even after repayments
30-Day Quick Action Plan (“Credit Reset Sprint”)
| Day(s) | Action |
| 1–3 | Fetch your credit reports from CRC, FirstCentral, CreditRegistry |
| 4–7 | Flag errors, discrepancies, submit disputes |
| 8–10 | Borrow a small, safe loan you can repay in ≤ 6 months |
| 11–20 | Set auto-payments, reminders; repay on time |
| 21–30 | Link rent or utility payments (if possible); avoid new loans |
FAQs
Q: How often do I get a free credit report?
Once per year, per credit bureau.
Q: What if my score is very low (< 550)?
Start small, repay consistently, dispute errors, be patient.
Q: Does using loan apps hurt me by default?
Only if they report your late payments or defaults. Under the 2025 rules, lenders must report to bureaus.
Q: Can my telecom bill affect my score?
Only if the telecom operator reports that data to credit bureaus. In some states or scenarios, yes.
Final Word
The 2025 shift in Nigeria’s credit culture and regulation means you’re no longer invisible to lenders. Stay alert. And let your credit open doors for you — not slam them shut.
