‘Consumer Credit Will Drive Nigeria’s Quest for $1tn Economy, Revitalise Local Manufacturing’

Dike Onwuamaeze

The Chairman of Nigerian Consumer Credit Corporation (CrediCorp), Mr. Aderemi Abdul-Bojela, has stated that consumer credit system would play a significant role in revitalising the country’s industrial sector and actualise President Bola Tinubu’s administration’s quest to bequeath Nigeria with $1 trillion economy by 2030.

Abdul-Bojela stated this in his goodwill message at 2024 “Africa Credit Expo,” powered by Credit Registry Nigeria and the African Export and Import Bank (Afreximbank), in Lagos.

According to him, “This country will require large scaled credit, particularly consumer credit and mortgages, to drive its economy. The current administration is targeting $1trillion economy in the next five years and a major component of that is credit, particularly consumer credit.

“I can assure you that credit will drive this economy and bring it back to life with a core consumer credit guarantee for ‘Made in Nigeria’ goods and services. That is where we are going.

“We will soon begin to use credit to bring back our industries. We will soon begin to use credit to connect the linkages between production and credit.”

Speaking in the same vein, the Managing Director/CEO of CrediCorp, Mr. Uzoma Nwagba, said that there is a real opportunity in consumer credit to really transform the country’s economy.

Nwagba said that building a sustainable credit system in a high interest environment would require a credit infrastructure that would identify individuals and deliver their credit scores in order to embolden financial institutions to grant them loans, which he said is the work of credit registries.  

He, however, said that it falls on the government to provide the regulations that would standardise what it means to have a credit score by ensuring that every single loan given in the country through formal and informal lending must be written to the credit registry.

These loans, according to him,  must exist in a system that could be tracked so that every borrower could be monitored and rewarded because “credit is about credibility, which is man’s confidence in man.

“Our job and our goal is how to make that the reality of an average Nigerian. Credit infrastructure is something that we are quite passionate about. And for now we have to start by making sure that even the laws that govern credit allow for reporting so that credit report can enable institutions to make decisions about their lending.

“The banks are flushed with cash but the issue of trust makes them averse to lending. And it is our role as a government agency to enable them to do that.”  

He said that the corporation would work to enable cheaper capital for people who are mostly underserved and provide credit guarantees to incentivise people to buy locally made goods and services.   

“Our goal is, if possible, to get it as close as zero interest rate if one is buying locally,” he said.

The Managing Director/CEO of Credit Registry Nigeria, Dr. Jameelah Sharrieff-Ayedun, said in her welcome address that the time has come to empower individuals with financial literacy that would enable them to build generational wealth.

According to her, “credit is a tool that opens the door to financial freedom to start a business, buy a home etc.

“We want to make sure that by 2030 that we are able to get three million families through our financial literacy programme and allow them to begin that journey to financial freedom.”  

In his goodwill message, the Chief Executive Officer of Walfin Brook Limited, Hon. John Omotola Soares, said that Nigeria stands at a crucial crossroads that is filled with opportunity to redefine its approach to building a credit culture that would empower its people.

Soares said: “Our financial systems must be accessible to all, regardless of socioeconomic status. Too often, underserved populations face barriers that limit their access to credit and financial services.

“By collaborating with fintech innovators and local organisations, we can create tailored solutions that address the unique challenges faced by these communities.”