FG Moves To Enhance Consumer Credit Environment

The Presidential Council on Industrial Revitalisation (PCIR) has instituted a technical working group.
to formulate a comprehensive framework to enhance consumer credit across the nation.

Highlighting the importance of an efficient consumer credit system, minister of industry, trade and investment,
Dr. Doris Uzoka-Anite, emphasised its role in improving market efficiencies and bridging gaps in consumption and productivity. Speaking at the inaugural meeting of the Technical Working Group for Consumer Finance, yesterday, in Abuja, Dr. Uzoka-Anite, expressed concern over the absence of a well-structured consumer credit system, citing it as a significant impediment to financial inclusion and economic prosperity.

She stated, “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.”

The establishment of the Technical Working Group, orchestrated by the Presidential Council on Industrial Revitalisation, is deemed timely and strategic. This initiative aims to propose and implement a viable institutional and regulatory framework to substantially enhance the consumer credit landscape in Nigeria.

Dr. Uzoka-Anite added, “The establishment of the Technical Working Group is timely and strategic—an initiative aimed, among other things, at proposing and implementing a viable institutional and regulatory framework that can significantly improve the consumer credit landscape.”

Despite the presence of numerous financial institutions and credit schemes, a considerable number of Nigerians encounter obstacles in accessing credit. These hurdles include stringent eligibility criteria, high interest rates, identity-related challenges, fragmented data sources, and a lack of awareness or understanding of credit processes. Additionally, there is insufficient credit available for lending.

The Technical Working Group comprises members from key entities, including the Central Bank of Nigeria (CBN), Federal Inland Revenue Service (FIRS), National Identity Management Commission (NIMC), National Insurance Commission (NAICOM), National Institute of Credit Administration (NICA), Federal Competition & Consumer Protection Commission (FCCPC), and the Bank of Industry (BoI), among others. The group has set 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,” the minister said.

In delivering on this objective, the committee has adopted a holistic consultative approach, as Dr. Uzoka-Anite explained, “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.”

Heading the committee is Dr. Doris Uzoka-Anite, the vice chair of the Council.

The council is chaired by the minister of finance and coordinating minister of the economy, Mr. Olawale Edun, and includes Dr. ‘Bosun Tijani, the Minister for Communications, Innovations, and Digital Economy.