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The short answer
Restructuring means agreeing new terms with your bank on an existing loan, usually a longer tenor, a smaller instalment, a short repayment break or a revised rate, so you can keep paying instead of defaulting. Ask early and in writing, with evidence of why your income has changed and a repayment plan you can keep. The loan stays on your credit file; ask the bank in writing how the restructured facility will be reported to the bureaus.
What restructuring is, and what it is not
A restructure changes the terms of a loan you already have. The debt does not disappear and is not forgiven; it is re-scheduled. Common changes are:
- A longer tenor, so each instalment is smaller.
- A moratorium, a few months of reduced or interest-only payments before full instalments resume.
- A revised rate, which banks agree to less often.
- Capitalising arrears, adding missed instalments to the balance and spreading them over the remaining term.
Restructuring is a recognised tool in Nigerian banking. During the pandemic the CBN issued circulars on regulatory forbearance for restructuring credit facilities affected by COVID-19, including for other financial institutions such as microfinance banks (May 2020, with follow-ups in March 2021 and March 2022). Those were temporary measures, but they show that a restructure is a normal conversation with a lender, not a favour.
A worked example: the real cost of a smaller instalment
| Original: 10 months left | Restructured: 18 months | |
|---|---|---|
| Monthly instalment | ₦137,111 | ₦83,604 |
| Total repaid | ₦1,371,105 | ₦1,504,874 |
| Interest paid | ₦171,105 | ₦304,874 |
The instalment falls by ₦53,507 a month, which may be the difference between paying and defaulting. The price is ₦133,769 more interest over the life of the loan. That trade can be worth it, but you should see it before you sign. Ask the bank for the new repayment schedule and the total amount payable under the new terms, and compare costs on the same basis; see APR vs flat fee. For the method behind these numbers, see why a longer tenor costs more.
Documents and information the bank will want
Each bank sets its own requirements, but a restructure request is assessed much like a new loan, so expect to provide:
- A written request explaining what changed and when (job loss, pay cut, illness, a business setback).
- Evidence: a letter from your employer, recent payslips, a medical report, or business sales records.
- Recent bank statements, often for the last six months, from every account where you receive income.
- Your proposal: the instalment you can pay and for how long, backed by a simple monthly budget.
- For a business loan, management accounts or a cash-flow forecast showing how the new schedule will be met.
Steps
- Act before you miss a payment if you can. A bank is more willing to adjust a loan that is still performing.
- Speak to your relationship or account officer and ask which unit handles restructures and what it needs.
- Send the request in writing, by email and letter, and keep copies. A template: loan repayment proposal letter.
- Ask for the offer in writing: new tenor, rate, instalment, total payable, any restructuring fee and the effect on any salary domiciliation or standing instruction.
- Check how it will be reported. Ask which status the bank will send to the credit bureaus and to the CBN's CRMS while the restructured loan is performing.
- Sign only what you can keep. A second restructure is harder to get than the first.
How a restructure shows on your credit report
The loan does not leave your file. CRC Credit Bureau's report includes credit facility history and the status of each facility, and CRC notes that accurate information cannot be removed, only errors corrected. Its FAQ also says reports cover the last six years of history and that the CBN requires data retention for up to ten years.
What matters is the status label and what happens next. Missed instalments already reported before the restructure will remain in the history. After the restructure, regular payments under the new schedule build a better pattern. We did not find a single published rule on how every bank labels a restructured loan, which is why you should ask your bank and then check your own report a month or two later. See how long a default stays on your report.
Questions to ask before you sign
- Is there a restructuring or management fee, and is it added to the balance?
- Do penalty charges on the missed instalments stop from the date of the restructure?
- Does the rate stay the same, and is it fixed for the new term?
- Can I repay early under the new terms without a charge?
If the bank says no
Ask for the reason in writing and whether a smaller change, such as a short moratorium, is possible. If you believe you have been treated unfairly, the bank must handle your complaint first; the CBN's Consumer Protection Regulations, issued in December 2019, cover how CBN-regulated institutions treat customers. See how to complain to the CBN about a bank loan.
Where Pryme fits
While you rebuild, a Personal Assistant on a Pryme Personal Account can set reminders ahead of each instalment and help you plan bills; it prepares and you approve every payment. A Flexible Box can hold a small repayment buffer. See Personal Assistant and Savings Boxes.
Questions people ask
Can a bank refuse to restructure my loan?
Yes. Restructuring is by agreement. Ask for the reason in writing and propose a smaller change, such as a short moratorium, if a full restructure is refused.
Does restructuring a loan affect my credit score?
The loan stays on your file with its history, including any missed payments already reported. Payments made on time under the new schedule then add positive history. Ask your bank how it will report the restructured facility.
Will a longer tenor cost me more?
Usually yes. In our example, stretching ₦1,200,000 from 10 to 18 months at 2.5% a month cuts the instalment by ₦53,507 but adds ₦133,769 in interest.
What should a loan restructuring letter include?
What changed and when, evidence, the instalment you can afford and for how long, and a request for the new terms in writing.
Sources
- Central Bank of Nigeria: Circulars (titles, reference numbers and dates) · accessed Oct 2026
- CRC Credit Bureau: Frequently asked questions · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.