Federal Government Forms Committee to Enhance Consumer Credit System

• Presidential Council on Industrial Revitalization forms Technical Working Group to enhance consumer credit in Nigeria, addressing obstacles for broader financial inclusion
• Trade Minister Dr. Doris Uzoka-Anite underscores the critical role of a structured consumer credit system for economic prosperity and inclusion

The Presidential Council on Industrial Revitalization has announced the establishment of a Technical Working Group tasked with developing a comprehensive framework to improve consumer credit in Nigeria.

In a statement released by the media unit of the Minister of Industry, Trade, and Investment in Abuja, the committee aims to facilitate seamless access to credit for Nigerians and enhance the overall consumer landscape.

Dr. Doris Uzoka-Anite, the trade minister, highlighted the critical role of an efficient consumer credit system in successful economies. She emphasized that such a system boosts market efficiencies and addresses gaps in consumption and productivity by providing immediate credit access to consumers, allowing them to make purchases ahead of their financial ability.

Uzoka-Anite pointed out that the absence of a well-structured consumer credit system has been a significant obstacle to financial inclusion and economic prosperity. Speaking at the inaugural meeting of the Technical Working Group for Consumer Finance, she stated, “The establishment of the Technical Working Group by the Presidential Council on Industrial Revitalization is timely and strategic, aiming to propose and implement a viable institutional and regulatory framework that can significantly improve the consumer credit landscape.”

Despite Nigeria’s numerous financial institutions and credit schemes, many citizens still encounter challenges in accessing credit. These hurdles include stringent eligibility criteria, high interest rates, identity-related issues, fragmented data sources for proof of livelihood and financial worth, lack of awareness or understanding of credit processes, and insufficient available credit for lending.

The Technical Working Group comprises members from various institutions, 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 committee has set a five-month timeline to achieve its objectives.

The specific goals of the committee include increasing consumer credit uptake in Nigeria, establishing a sustainable credit system aligned with global best practices, and enhancing the supporting infrastructure (technology, data, financial institutions, global partners) to bolster credit operations and empower industry stakeholders.