The Presidential Council on Industrial Revitalization has formed a Technical Working Group comprised of representatives from the Central Bank of Nigeria, the National Identity Management Commission, and the Federal Competition and Consumer Commission to develop a framework to improve consumer credit in Nigeria.
According to Nairametrics, the National Insurance Commission, the National Institute of Credit Administration, the Bank of Industry, and the Federal Inland Revenue Service were also represented on the Technical Group.
The Committee has a five-month schedule to complete its objectives, according to a statement released on Wednesday by the Minister of Industry, Trade, and Investment, Dr Doris Nkiruka Uzoka-Anite.
The Committee’s specific objectives include increasing consumer credit uptake in Nigeria, enabling a sustainable credit system for the country in line with global best practices, and improving the supporting infrastructure (technology, data, financial institutions, global partners) to boost credit operations and equip industry players.
Earlier this week, during the inaugural meeting of the Technical Working Group for Consumer Finance, the Trade Minister stated:
“An efficient consumer credit system is a critical component of a successful economy because it works to improve market efficiencies and fill gaps in consumption and productivity by providing consumers with immediate access to credit, allowing them to buy 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 Presidential Council on Industrial Revitalization’s formation of the Technical Working Group is timely and strategic, with the goal of 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 of Finance said.
The Minister stated that in order to achieve its goal, the Committee has used 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 of Industry, Trade, and Investment, Uzoka-Anite, serves as Vice Chair of the Presidential Council for Industrial Revitalization, which is chaired by the Minister of Finance and Coordinating Economy, Mr Olawale Edun, and the Honourable Minister for Communications, Innovations, and Digital Economy, Dr ‘Bosun Tijani.
