Ministry, CBN, others to improve consumer credit
27 December 2023 |
4:18 am
In a bid to develop a framework to build and enhance consumer credit in Nigeria, the Presidential Council on Industrial Revitalisation has established a Technical Working Group with members from the Central Bank of Nigeria
In a bid to develop a framework to build and enhance consumer credit in Nigeria, the Presidential Council on Industrial Revitalisation has established a Technical Working Group with members from the Central Bank of Nigeria (CBN), National Identity Management Commission (NIMC) and the Federal Competition and Consumer Commission (FCCPC).
Other members of the technical group were also 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).
According to the Minister of Industry, Trade and Investment and Vice Chair of the Council, Dr. Doris Nkiruka Uzoka-Anite, the committee has 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.
Speaking during the inaugural meeting of the Technical Working Group for Consumer Finance held recently, Uzoka-Anite, said: “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.”
She added that the establishment of the Working Group by the Presidential Council 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,” she added.
She also noted that in delivering on its objective, they have 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.
The council is chaired by the Minister of Finance and Coordinating Economy, Olawale Edun, alongside the Minister for Communications, Innovations and Digital Economy, Dr Bosun Tijani.
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