Credit Bureau expresses concern on dwindling access to funds

The Credit Bureau Association of Nigeria (CBAN), has expressed concerns over the dwindling credit penetration for consumers in Nigeria, even as data released by credit bureaus show that fewer than 25 million Nigerians have enjoyed credit in the last decade.
  
The Managing Director and Chief Executive Officer, CRC Credit Bureau, Dr. Tunde Popoola, at a webinar organised in collaboration with the Lagos Chamber of Commerce and Industry (LCCI), tagged: “Exploring access to finance opportunities in a pandemic world,” said although credit disbursed by Nigerian banks to the private sector was N8.06 trillion as of December 2009, it grew to N26.69 trillion as at December 2019, which he said represents a 23.1 per cent increase.
  
He said consumers and Micro Small and Medium Enterprises (MSMEs), had been experiencing constraints in accessing finance, compared with large firms pre-COVID-19, thereby making it difficult for consumers and MSMEs to access finance from formal financial institutions because they are perceived to have higher risks.
  

He however, noted that running a profitable and thriving business in the current economic realities would go beyond money and factor in other variables such as technology and training that can assist business owners to achieve their business goals.
  
He recommended that accessing loans from commercial entities should be just one of the many resources that MSMEs need moving forward, while MSMEs need to seek support beyond finance, and take advantage of all the resources made available from both public and private entities.

He said the ongoing global pandemic has triggered an economic downturn for both developing and developed economies around the world, saying that Nigerian business owners are facing more difficulties with the increase in fuel and electricity tariffs in recent times.
  
Also speaking, Ag. Managing Director, First Central Credit Bureau, Oladimeji Peters, urged MSMEs to get their acts together by ensuring they run a good credit history, saying the banks are only open to credible consumers with good credit history.

The Managing Director and Chief Executive Officer, Credit Registry, Mrs. Jameelah Sharrief-Ayedun, said the need to meet financial obligations has never been so important, maintaining that credit bureaus now support lenders and creditors to take decisions with facts.
  
She added that those with good credit histories will continue to enjoy unhindered access to formal credit, while those who do not have would continue to struggle.