The Federal Government on Tuesday disclosed that plans are underway to link citizens’ credit scores significantly to National Identification Number (NIN).
Through this, governnent will establish a centralised credit bureau for the whole country and build a comprehensive database of Nigeria’s credit profiles.
Addressing newsmen at the State House, Abuja, Managing Director of CREDICORP, Uzoma Nwagba, explained that linking credit scores to the NIN will have real-life benefits for Nigerians.
According to him, all lenders will be required to report loan repayments, guaranteeing that every Nigerian maintains an accurate credit score.
His words: “More importantly, there will be consequences for loan defaulters, but these will be subtle and structured rather than predatory. May be you want to renew your passport, but if something shows that you owe money somewhere, you may not be able to proceed. The same applies to renewing your driver’s license or renting a house. There is no hiding place.
“This system ensures that whether your money is in a commercial bank, FinTech, or microfinance institution, loans taken and not repaid will be tracked and recoverable.
“The essence is for everyone to have a credit score. We are gathering comprehensive financial and non-financial data to develop a structural algorithm that will score every Nigerian; there will be no hiding place for anyone again.”
Nwagba further stressed that CREDICORP’s mission include establishing credit infrastructure and pointed out its role in combating corruption and its key objective of driving industry growth by facilitating consumer credit to help Nigerians buy locally manufactured products, thereby promoting the Nigeria First policy.
He said: “The first goal is to improve the quality of life. This is not even my idea. It is what the President has always said. His second goal is to stem corruption. Again, it comes back to this idea that people who are faced with pressures to get into unsavoury practices of corruption is because they do not have the capital, the funding that they need to lead a decent life, but like that. Of course, but quite a bit of corruption, especially in the civil service, comes from the need to have a decent life and not having the upfront capital to deal with it. So you want to build a house, and you have to put in 40 million naira of effort.
“So, by people having more access to consumer credit, the pressures on their current active income reduce. So the second reason stems from corruption. The third reason is to catalyze industry, which is that if we can channel the consumer credit that we are giving to Nigerians to purchase locally manufactured goods with a more deliberate about that, then what would happen is that those industries can also grow, because you are now bringing purchasing power to them, and you create jobs, so improve lives, stem corruption, catalyze industry.”
The Managing Director tasked all financial institutions to partner with CREDICORP, disclosing that Nigeria needs about N183 trillion in credit to effectively develop the country level towards an efficient consumer credit facility.
“No government has that kind of money, so all financial institutions must commit to consumer credit. With the right infrastructure, lenders will be more relaxed and willing to provide loans, making credit more accessible.”
Nwagba also talked about government’s forthcoming consumer credit program targeting 400,000 Nigerian youths, noting that CREDICORP has already begun providing loans to National Youth Service Corps members through its YouthCred scheme.
He stressed that the initiative is designed to enhance the living standards of young Nigerians while equipping them with responsible credit management skills for the future.
Nwagba also revealed that all is now set for the official launch of the program, with all platforms, systems, and processes fully established.
“On the President’s announcement on youth cred, Youth cred is now, it is for the NYSC members and youth in general, the target is 400,000 Nigerians. All its platforms, systems, and processes have been set up. We are just essentially tightening up some sort of launch process. It has started, quite frankly”, he further stated.
Deji Elumoye
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