The Federal government is seeking to improve access to credit finance for Nigerian citizens as a means to boost market efficiency and productivity for economic growth
Speaking at the inauguration of the Technical Working Committee in Abuja by the Presidential Council on Industrial Revitalization, the Minister of Industry, Trade, and Investment, Dr. Doris Uzoka Anite, said the initiative will improve the purchasing power of Nigerians.
She explained that “an efficient consumer credit system is an essential component of a successful economy as it works to improve market efficiencies and fill in the gaps in consumption and productivity by providing consumers immediate access to credit, allowing them to purchase ahead of their ability.
“The absence of a well-structured consumer credit system has been a significant impediment to financial inclusion and economic prosperity,” Anite noted.
According to a statement by Dr Anite’s media unit, the establishment of the Committee by the Presidential Council on Industrial Revitalization is a timely and strategic initiative aimed at investigating the present state of consumer credit in Nigeria, identifying the challenges faced by both consumers and financial institutions, and proposing a coherent regulatory framework that can significantly improve the consumer credit landscape.
The Committee is chaired by the Minister of Finance and Coordinating Economy, Mr. Olawale Edun, and assisted by Dr. Doris Uzoka-Anite, Minister for Industry Trade and Investment, as well as the Minister for Communications, Innovations, and Digital Economy, Dr. ‘Bosun Tijani.
“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, a lack of awareness or understanding of credit processes, and inadequate credit available for lending,” the statement said.
Other members of the Committee are drawn from the Central Bank of Nigeria (CBN), the Federal Inland Revenue Service (FIRS), the National Identity Management Commission (NIMC), the National Insurance Commission (NAICOM), the National Institute of Credit Administration, the Federal Competition and Consumer Protection Commission (FCCPC), and the Bank of Industry (BOI), among others, and agreed on a five-month timeline to achieve various objectives, including promoting inclusivity and improving access to finance.
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; enhancing the supporting infrastructure (technology, data, financial institutions, and global partners) to boost credit operations; and equipping players in the industry.
In delivering on these objectives, the Committee has adopted a holistic consultative approach that draws on the experience, knowledge, and expertise of the credit system ecosystem to understand the issues within the industry and define workable solutions to address them.
Additionally, the Committee seeks to address issues of corruption to foster economic growth. To achieve these goals, the Committee will focus on developing a policy framework, harmonising data, and enhancing both institutional and legal frameworks to achieve success.
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