FG to Boost Consumer Credit to Deepen Financial Inclusion, Others

James Emejo in Abuja

The Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, has said the federal government is currently working to develop the needed framework to enhance consumer credit in the country.

Speaking at the inaugural meeting of the Technical Working Group (TWG) for consumer finance, under the Presidential Council on Industrial Revitalisation, she said an efficient consumer credit system remained a hallmark of successful economies.

She said this often 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.

Anite pointed out that the absence of a well-structured consumer credit system had been a significant impediment to financial inclusion and economic prosperity.

She said establishment of the working group was timely and strategic as the initiative seeks to propose and implement a viable institutional and regulatory framework that could significantly improve the consumer credit landscape.

In a statement issued by her media unit, the minister noted that though the country currently has numerous financial institutions and credit schemes, many Nigerians still face substantial hurdles in accessing credit.

She noted that this was 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 membership of the TWG include the Central Bank of Nigeria (CBN) Federal Inland Revenue Service (FIRS) National Identity Management Commission (NIMC), and National Insurance Commission (NAICOM).

Others are: The National Institute of Credit Administration (NICA), Federal Competition and Consumer Protection Commission (FCCPC), Bank of Industry (BoI) among others.

The committee agreed on a five-month timeline to achieve its objectives – to increase consumer credit uptake in the country, enable a sustainable credit system in line with global best practices.

It will also enhance the supporting infrastructure , including technology, data, financial institutions, global partners, to boost credit operations and equip players in the industry.

In delivering on the 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.

Uzoka-Anite 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 and the Minister for Communications, Innovation and Digital Economy, Dr ‘Bosun Tijani.