Joy Agwunobi
In a move towards enhancing financial inclusion and improving the standard of living for Nigerians, the Nigerian Consumer Credit Corporation (CREDICORP) has announced a strategic partnership with the National Identity Management Commission (NIMC), targeted at accelerating the development of credit scores for all Nigerians who possess a National Identification Number (NIN).
The partnership according to the organisations, aligns with President Bola Tinubu’s vision, articulated during the launch of the Consumer Credit Scheme in April 2024, to boost financial inclusion and uplift the living standards of Nigerians. By leveraging the comprehensive NIN database maintained by NIMC, CREDICORP aims to streamline the credit scoring process, making financial services more accessible to a broader segment of the population.
CREDICORP disclosed the collaboration on Friday, revealing that the agreement was finalised during a working session earlier in the week. The session involved Uzoma Nwagba, CREDICORP’s managing director, and Bisoye Coker-Odusote, NIMC’s director general.
The corporation noted that in collaboration with the National Identity Management Commission (NIMC), they have established a dedicated team to facilitate the swift implementation of their consumer credit scheme. It added that the team will work closely with regulators, financial institutions, and credit registries to enhance consumer credit reporting and mainstream credit scores for Nigerians.
Following a thorough examination of the existing infrastructure, the team aims to leverage the National Identification Number to strengthen credit infrastructure. With over 100 million Nigerians already registered under the NIN, CREDICORP explained that identity is the foundation of a functioning credit system, and this partnership is critical to their mission.
The collaboration is expected to have a positive impact on the Nigerian economy, enabling millions of citizens to access credit facilities and improve their financial well-being.
Uzoma Nwagba, the CEO and managing director of CREDICORP, explained the agency’s plan to leverage the National Identification Number (NIN) to document the credit behaviour of every economically active Nigerian. Nwagba outlined that under this new consumer credit scheme, the credit scores of Nigerians would be integrated with their NIN, targeting around 80 million economically active citizens.
According to him, the primary objective of this scheme is to empower Nigerians who earn a modest income to acquire essential items that can improve their quality of life. These items include cars, houses, quality education, laptops, and other necessities, with the option to pay for them over an extended period. The initiative aims to make it easier for individuals to access and afford these essentials, thereby enhancing their overall standard of living.
Nwagba however acknowledged a major challenge in Nigeria’s credit system which is the lack of comprehensive data and proper identification. According to Nwagba, the introduction of credit scores linked to NINs will address this issue by ensuring that every creditor is properly identified. This system is expected to bring about greater accountability and transparency in the credit market, making it difficult for individuals to evade their credit responsibilities.
Nwagba further stated that his primary focus is to strengthen Nigeria’s credit infrastructure. He asserted that integrating credit scores with NINs will enhance the credibility and reliability of the credit system, fostering greater trust among financial institutions and consumers alike.
