FG Eyes Credit Boost for Nigerians
By Patience Ikpeme
The Nigerian government has established a Technical Working Group to overhaul the consumer credit system. This is to address long-standing barriers and paving the way for economic growth and financial inclusion.
Dr. Doris Uzoka-Anite, Minister for Trade and Investment, stressed the importance of an efficient consumer credit system, stating that it can enhance market efficiencies and bridge consumption gaps by extending immediate credit access to consumers. Currently, the absence of a well-structured consumer credit system has hindered financial inclusion and overall economic prosperity.
According to her, “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 said at the inaugural meeting of the Technical Working Group for Consumer Finance held earlier in the week.
Recognizing the urgency of the matter, the Presidential Council on Industrial Revitalization has strategically formed the Technical Working Group to propose and implement an effective institutional and regulatory framework that will greatly enhance the consumer credit landscape.
Despite the presence of numerous financial institutions and credit schemes in Nigeria, many citizens face significant obstacles when attempting to access credit. These hurdles include stringent eligibility criteria, high interest rates, challenges related to identity verification, limited sources of financial and livelihood proof, lack of credit process awareness, and inadequate available credit.
Comprised of members from various key institutions such as the Central Bank of Nigeria, Federal Inland Revenue Service, National Identity Management Commission, National Insurance Commission, National Institute of Credit Administration, Federal Competition & Consumer Protection Commission, and the Bank of Industry, among others, the Technical Working Group was given a five-month timeline to deliver on the assignment.
This committee aims to achieve specific goals, including fostering a higher uptake of consumer credit in Nigeria, establishing a sustainable credit system that aligns with global best practices, and bolstering the supporting infrastructure such as technology, data availability, financial institutions, and global partnerships to enhance credit operations and support industry stakeholders.
The Committee has adopted a comprehensive consultative approach, leveraging the collective expertise and experience of the credit ecosystem to understand the challenges within the industry and develop actionable solutions to overcome them.
The Vice Chair of the Presidential Council for Industrial Revitalisation, Dr. Doris Uzoka-Anite, represents the Ministry of Industry, Trade, and Investment, while the council is chaired by Mr. Olawale Edun, the Minister of Finance and Coordinating Economy, with Dr. ‘Bosun Tijani, there Minister for Communications, Innovations, and Digital Economy.
In conclusion, the formation of the Technical Working Group marks a crucial step towards revolutionizing consumer credit in Nigeria, fostering economic growth, and ensuring financial well-being for all citizens.
