The National Orientation Agency (NOA) has announced that the Nigerian Consumer Credit Corporation, or CREDICORP, will create a consolidated credit system capable of assessing individuals’ credit histories.
In its weekly report, the agency indicated that the system would link Nigerians’ credit ratings with their national identification numbers (NIN).
NOA emphasised that credit ratings are crucial for banks and other financial institutions when evaluating eligibility for loans, credit cards, and various financial products.
“This credit system will link Nigerians’ credit scores with their National Identification Numbers (NIN). Credit score is the numerical representation of an individual’s creditworthiness. It reveals the likelihood of such an individual to obtain loans. The numerical representation of an individual is usually in three digits, which range from 300 to 850.” The report said.
On April 24, 2024, the government gave the green light for the commencement of the first phase of the consumer credit scheme and unveiled a portal for Nigerians to express their interest in the program.
President Bola Tinubu revealed on June 12 that a new consumer credit initiative to support 400,000 young Nigerians, including those serving in the National Youth Service Corps (NYSC), will launch in July.
The president stated that this initiative would be carried out through CREDICORP, which has already provided credit access to over 100,000 Nigerians, including 35,000 civil servants.
Starting in July, the NOA announced that the government’s interest-free consumer credit would be accessible to all creditworthy Nigerians, irrespective of their backgrounds.
Uzoma Nwagba, the managing director of CREDICORP, mentioned that the initiative would unify individuals’ credit information from all financial entities, such as banks, fintech companies, and microfinance institutions, into a national credit bureau.
Nwagba also noted that the new system would make it more difficult for borrowers to avoid repayment, as it would enforce strict accountability and impose severe penalties on defaulters.
