The Federal Government of Nigeria has announced plans to incorporate credit scores into the National Identification Number (NIN) as part of its consumer credit scheme. This initiative aims to document and evaluate the credit behavior of economically active Nigerians.
Uzoma Nwagba, the Chief Executive Officer of the Nigerian Consumer Credit Corporation (CREDICORP), shared this development during a television interview. He emphasized that the goal is for every economically active Nigerian to have their credit score linked to their NIN, ensuring comprehensive tracking of credit behavior.
Nwagba revealed that the scheme aims to target approximately 80 million Nigerians who are earning an income. The objective is to enable these individuals to acquire essential items such as cars, houses, quality education, and laptops, and to pay for them over extended periods.
Addressing Identity Challenges
One of the major hurdles in Nigeria’s credit system has been the lack of accurate data and proper identification. Nwagba expressed confidence that integrating credit scores with the NIN would resolve these issues by ensuring every creditor is properly identified. He highlighted that his primary focus is to strengthen the country’s credit infrastructure.
Progress in NIN Registration
Despite the initial slow pace of NIN registration, the National Identity Management Commission (NIMC) reported that over 107.3 million Nigerians had been registered by April this year.
Nwagba noted that Nigeria requires about N180 trillion in consumer credits annually. However, banks are hesitant to lend due to the risk of default. He stated that the government cannot fund this alone and emphasized the need for financial institutions to step up, assured that the Central Bank of Nigeria (CBN) and other stakeholders are strong partners in this initiative.
CREDICORP plans to collaborate with microfinance institutions, fintech companies, and cooperatives committed to advancing consumer credits. Nwagba indicated that the Corporation would provide credit guarantees for specific industries and targets to encourage lending.
Launch of the Consumer Credit Scheme
President Bola Tinubu launched the first phase of the Consumer Credit Scheme on April 21. This program aims to offer credit facilities initially to civil servants before expanding to the broader public. Ajuri Ngelale, the President’s special adviser on media and publicity, highlighted the importance of consumer credit in modern economies. He noted that such schemes empower individuals to improve their standard of living by enabling upfront acquisition of goods and services while managing payments over time.
Bottom Line
The integration of credit scores with NIN is expected to transform Nigeria’s consumer credit landscape, fostering a culture of creditworthiness and boosting the economy by making credit more accessible to millions of Nigerians.
