The Presidential Council on Industrial Revitalization has established a Technical Working Group with members from the Central Bank of Nigeria (CBN), the National Identity Management Commission (NIMC) and the Federal Competition and Consumer Commission (FCCPC) to develop a framework to enhance consumer credit in Nigeria.
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 a statement released on Wednesday by the Minister of Industry, Trade and Investment, 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.
Driving an efficient credit system
Speaking during the inaugural meeting of the Technical Working Group for Consumer Finance held earlier in the week, the Trade Minister 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 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 Minister added.
- The Minister noted that in delivering on its 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.
- The Minister for Industry, Trade and Investment Uzoka-Anite, sits as the Vice Chair of the Presidential Council for Industrial Revitalization, 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.
