The Presidential Council on Industrial Revitalisation has initiated the formation of a Technical Working Group, comprising representatives from key entities such as the Central Bank of Nigeria (CBN), the National Identity Management Commission (NIMC), and the Federal Competition and Consumer Commission (FCCPC).
This collaborative effort aims to establish a comprehensive framework to bolster consumer credit in Nigeria.
The Technical Group also includes members from the National Insurance Commission (NAICOM), the National Institute of Credit Administration (NICA), the Bank of Industry (BOI), and the Federal Inland Revenue Service (FIRS).
The Minister of Industry, Trade and Investment, Dr. Doris Nkiruka Uzoka-Anite, announced the five-month timeline set for the Committee to achieve its outlined objectives.
The specific goals of the Committee encompass increasing consumer credit adoption in Nigeria, establishing a sustainable credit system aligned with global best practices, and fortifying the supporting infrastructure, including technology, data, financial institutions, and global partnerships.
Emphasising the significance of an efficient consumer credit system, Minister Uzoka-Anite highlighted its pivotal role in enhancing market efficiencies and bridging gaps in consumption and productivity.
She underscored that the absence of a well-structured consumer credit system has been a hindrance to financial inclusion and overall economic prosperity.
During the inaugural meeting of the Technical Working Group for Consumer Finance, the Trade Minister expressed the timely and strategic nature of the initiative by the Presidential Council on Industrial Revitalisation.
The Committee’s objective is to propose and implement a robust institutional and regulatory framework aimed at substantial improvement in the consumer credit landscape.
Minister Uzoka-Anite acknowledged the existing challenges for Nigerians in accessing credit and outlined factors such as stringent eligibility criteria, high-interest rates, identity-related issues, fragmented data sources, lack of awareness, and insufficient available credit for lending.
In line with its objective, the Committee has adopted a holistic consultative approach, leveraging the experience, knowledge, and expertise within the credit ecosystem to comprehend industry challenges and define practical solutions.
Minister Uzoka-Anite serves as the Vice Chair of the Presidential Council for Industrial Revitalisation, which is chaired by the Minister of Finance and Coordinating Economy, Mr. Olawale Edun, and includes the Honourable Minister for Communications, Innovations, and Digital Economy, Dr. ‘Bosun Tijani.
The Technical Working Group’s initiative to enhance consumer credit in Nigeria reflects a comprehensive response to address the multifaceted challenges inhibiting widespread access to credit.
The collaborative effort among entities like the CBN, NIMC, FCCPC, and other relevant bodies signals a concerted approach to create a more inclusive and efficient credit environment.
With a diverse representation from key sectors, the Committee aims to tap into various perspectives and expertise, fostering a holistic understanding of the issues and crafting effective solutions.
The consumer credit landscape in Nigeria has been historically hindered by factors such as high-interest rates and stringent eligibility criteria.
The Committee’s commitment to addressing these challenges aligns with broader efforts to stimulate economic growth and financial inclusion.
By fortifying the supporting infrastructure, including technological advancements and streamlined data systems, the Committee seeks to pave the way for a more seamless and accessible credit experience for consumers.
As part of the consultative approach, the Committee is likely to engage with stakeholders across the credit ecosystem, including financial institutions, regulatory bodies, and industry experts.
This collaborative dialogue can contribute valuable insights to shape policies and frameworks that not only meet regulatory standards but also cater to the evolving needs of consumers.
The Minister’s acknowledgment of identity-related challenges and the fragmented nature of data sources underscores the Committee’s commitment to addressing fundamental issues that impact credit accessibility.
In the coming months, stakeholders will closely monitor the Committee’s progress and anticipate the unveiling of a robust framework that can serve as a catalyst for positive transformations in the consumer credit landscape.
The holistic approach, strategic collaboration, and emphasis on consultation position this initiative as a pivotal step toward fostering financial inclusion and economic prosperity in Nigeria.
