FG Moves To Improve Consumer Credit In Nigeria

The Presidential Council on Industrial Revitalisation has established a Technical Working Group to develop the needed framework to enhance consumer credit in Nigeria.

“An efficient consumer credit system is a highly essential component of successful economies, as it works to improve market efficiencies and fill in gaps in consumption and productivity by providing consumers immediate access to credit allowing them to purchase ahead of ability. The absence of a well-structured consumer credit system has been a significant impediment to financial inclusion and economic prosperity,” Dr. Doris Uzoka-Anite the Trade Minister said at the inaugural meeting of the Technical Working Group for Consumer Finance.

The establishment of the Technical Working Group by the Presidential Council on Industrial Revitalization is timely and strategic – an initiative aimed, among other things, at 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 Technical Working Group draws its members from the Central Bank of Nigeria (CBN) Federal Inland Revenue Service (FIRS) National Identity Management Commission (NIMC), the National Insurance Commission (NAICOM), the National Institute of Credit Administration (NICA), the Federal Competition & Consumer Protection Commission (FCCPC), the Bank of Industry (BOI) amongst others, and agreed on a five-month timeline to achieve its objectives.

The specific objectives of the Committee include increasing consumer credit uptake in Nigeria, enabling a sustainable credit system for the country in line with global best practices, and enhancing the supporting infrastructure (technology, data, financial institutions, global partners) to boost credit operations and equip players in the industry.

In delivering on this objective, the Committee has adopted a holistic consultative approach that draws on the experience, knowledge, and expertise of the credit ecosystem to understand the issues within the industry and define workable solutions to address them.

Uzoka-Anite, CFA sits as the Vice Chair of the Presidential Council for Industrial Revitalisation, which is chaired by the Minister of Finance and Coordinating Economy, Mr Olawale Edun, with the Honourable Minister for Communications, Innovations and Digital Economy, Dr ‘Bosun Tijani.