FG initiates plan to increase access to consumer credit

Cynthia Ezekwe

In a move to improve credit access in Nigeria, the Presidential Council on Industrial Revitalisation has established a technical working group, consisting of representatives from the Central Bank of Nigeria (CBN), the National Identity Management Commission (NIMC), and the Federal Competition and Consumer Commission (FCCPC). The group will work together to develop a framework that will make it easier for consumers to access credit in Nigeria. 

In addition to the CBN, NIMC, and FCCPC, the technical working group includes representatives from other key institutions in the credit system drawn from the National Insurance Commission (NAICOM), the National Institute of Credit Administration (NICA), the Bank of Industry (BOI), and the Federal Inland Revenue Service (FIRS). 

In a statement, Doris Nkiruka Uzoka-Anite, the minister of industry, trade, and investment, outlined the specific objectives of the technical working group. These include increasing the number of consumers who have access to credit in Nigeria, aligning the country’s credit system with global best practices, and strengthening the infrastructure that supports credit operations, such as technology, data, and financial institutions. The minister also stated that the committee has a five-month timeline to achieve these objectives.    

Uzoka-Anite, speaking at the first meeting of the technical working group, stressed the importance of an efficient consumer credit system for economic success. She noted that credit systems work to improve market efficiencies and bridge gaps in consumption and productivity by providing consumers with immediate access to credit. This allows them to make purchases even when they do not have the resources to do so immediately.

Uzoka-Anite further explained that the lack of a well-structured consumer credit system has been a major barrier to financial inclusion and economic prosperity. She noted that the establishment of the technical working group is part of an initiative to address this issue by proposing and implementing a viable institutional and regulatory framework that can significantly improve the consumer credit landscape.

“Nigeria has numerous financial institutions and credit schemes, but many Nigerians still face substantial hurdles in accessing credit due to stringent eligibility criteria, high-interest rates, identity-related challenges, fragmented data sources for proof of livelihood and financial worth, lack of awareness or understanding of credit processes, and inadequate credit available for lending,” the minister said.  

According to Uzoka-Anite, the committee is adopting a holistic consultative approach that draws on the experience, knowledge, and expertise of the various stakeholders in the credit ecosystem. This will allow the committee to gain a better understanding of the issues within the industry and develop practical solutions that can address them.