The Presidential Council on Industrial Revitalisation has established a Technical Working Group to develop the needed framework to enhance consumer credit in Nigeria.
The Nigerian Ministry of Industry, Trade and Investment in a statement said the establishment of the Technical Working Group by the Presidential Council on Industrial Revitalisation is aimed at proposing and implementing a viable institutional and regulatory framework that can significantly improve the consumer credit landscape.
According to the statement, “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.”
“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,” it added.
The Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite at an inaugural meeting of the Technical Working Group for Consumer Finance held earlier in the week, said absence of a well-structured consumer credit system has been a significant impediment to financial inclusion and economic prosperity.
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) amongst 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.
To deliver on these objectives, 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 of Industry, Trade and Investment, Dr Doris Uzoka-Anite, CFA is the Vice Chair of the Presidential Council for Industrial Revitalisation, which is chaired by the Minister of Finance and Coordinating Economy, Mr Olawale Edun, with the Minister of Communications, Innovations and Digital Economy, Dr ‘Bosun Tijani.
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