The Presidential Council on Industrial Revitalisation says it has established a Technical Working Group to develop the needed framework to enhance consumer credit in Nigeria.
According to a statement by the media unit of the Minister of Industry Trade and Investment in Abuja yesterday, the committee is to ensure that Nigerians access credit seamlessly and also improve the consumer landscape.
“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, the trade minister said at the inaugural meeting of the Technical Working Group for Consumer Finance held earlier in the week.
Speaking further, she said, “The establishment of the Technical Working Group by the Presidential Council on Industrial Revitalisation 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.
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“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 said.
The Technical Working Group draws its members from the Central Bank of Nigeria (CBN), Federal Inland Revenue Service (FIRS), National Identity Management Commission (NIMC), the National Insurance Commission (NAICOM), the National Institute of Credit Administration (NICA), the Federal Competition & Consumer Protection Commission (FCCPC), the Bank of Industry (BOI), among others, and agreed on 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.
