CBN Rolls Out New Rules for Loan Disputes Between Customers and Banks
- The CBN has issued an exposure draft proposing a 30-member Mediation and Dispute Resolution Panel (MDRP)
- The move is to enhance consumer protection and financial system confidence in the country
- The panel will operate under the Secured Transactions in Movable Assets (STMA) Act, 2017
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and broader market trends.
The Central Bank of Nigeria (CBN) has released an exposure draft proposing the establishment of a 30-member Mediation and Dispute Resolution Panel (MDRP) aimed at strengthening consumer protection and boosting confidence in Nigeria’s financial system.
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According to a circular signed by the acting director of the Development Finance Advisory Department, Paul Oluikpe, the initiative is part of broader efforts to enhance the financial ecosystem, ensure compliance with existing legislation, and improve the efficiency of financial intermediation.
The draft guidelines outline that the MDRP will operate under the Secured Transactions in Movable Assets (STMA) Act, 2017, which provides for a mediation framework for resolving civil disputes between creditors and grantors arising from secured transactions in movable assets.
The panel is intended to serve as the first point of recourse for dispute resolution under the Act.
The CBN stated that the proposed framework is designed to provide a “specialised, cost-effective platform” for resolving disputes relating to the creation, perfection, and enforcement of security interests in movable assets, while ensuring transparency, fairness, and efficiency within the system.
Under the proposal, the apex bank will appoint 30 professionals from whom panels will be constituted, with each panel comprising three members serving on a rotational basis for an initial four-year term.
Members may be reappointed for another four-year term, subject to performance evaluation, but shall not serve more than two terms, whether consecutive or not.
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The draft also specifies that members must possess at least 10 years of relevant experience in law, banking, finance, mediation, arbitration, alternative dispute resolution, or financial regulation, and must demonstrate integrity, competence, and sound judgment.
He said:
“Upon satisfactory performance, determined through an evaluation by the CBN, members may be reappointed for an additional term of four years. The tenure of members shall not exceed two terms of four years each, which need not be consecutive.
“Members shall be professionals with a minimum of 10 years of relevant experience in any of law, banking, finance, mediation, arbitration, alternative dispute resolution, or financial regulation. Members shall be persons of proven integrity, professional competence and sound judgement.”
Loan apps in Nigeria
Earlier, Legit.ng reported that as of January 2026, the federal government, through the Federal Competition and Consumer Protection Commission (FCCPC), stated that a total of 457 companies had secured full approval to operate as digital lenders in the country.
A total of 35 others are said to have gotten conditional approval from the Commission, while 103 digital lenders are under the watch of the FCCPC.
The Nigerian government is making real efforts to ensure citizens do not fall patronise unregulated apps and also avoid unethical collection practices such as harassment or public shaming.
For most borrowers, the key considerations when choosing a loan app remain: speed of disbursement, flexible repayment options, and interest rates.
Source: Legit.ng
