OFIs’ ‘submit before disbursement’ requirement to begin August 1

THE Central Bank of Nigeria (CBN) has stated that Other Financial Institutions (OFIs) must meet certain requirements set by the apex bank to be enrolled in the Credit Risk Management System (CRMS).

This was disclosed by Mr Chibuzo Efobi, Director, Financial Policy and Regulation Department in a circular posted on the CBN’s website titled, ‘Re: Enrolment of Other Financial Institutions (OFIs) on the Credit Risk Management System (CRMS).’

Specifically, the provisions of the regulatory guidelines for the Redesigned Credit Risk Management System have become applicable to all OFIs.

All Other Financial Institutions (OFIs) were reminded by the apex bank to ensure that their customers’ accounts followed the 10-digit Nigeria Uniform Bank Account Number (NUBAN) format.

CBN said, “All OFls are hereby informed that the provisions of the regulatory guidelines for the Redesigned Credit Risk Management System for commercial, merchant, and non-interest banks in Nigeria issued on February 27, 2017 (Ref No. FPR/DIR/GEN/CRM/06/012) and the additional regulatory guidelines for the operation of the redesigned CRMS issued on September 10, 2018 (Ref No. FPR/DIR/GEN/CIR/07/007) have become applicable to all OFls.”

The CBN also said that “Enforcement of Section 3.1(a) of the extant guidelines on CRMS that captures the ‘submit before disbursement’ requirement shall commence on August 1, 2022.”

The apex bank further advised them to tag their customers’ accounts with a Bank Verification Number (BVN) or a Taxpayer Identification Number (TIN) for individual and non-individual accounts, respectively.

The account holder must be profiled on the Nigeria Interbank Settlement System (NIBSS) Industry Customer Accounts Database (1CAD) by June 20, according to the apex bank.

“Please note that failure to comply with the above timelines shall attract appropriate sanctions,” the circular warned.

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