According to Uzoma Nwagba, the Managing Director of the Nigerian Consumer Credit Corporation, or CREDICORP, Nigeria will require roughly N183 trillion in credit in order to successfully transition the nation to an effective consumer credit facility.
This comes as a federal government agency is considering a system that would require credit ratings to be linked to a person’s National Identification Number (NIN) in order for them to be eligible for loans.
The strategy will create a centralized credit bureau for the entire nation and create an extensive database of Nigerian credit profiles, Nwagba disclosed on Tuesday.
Connecting credit scores to the NIN of prospective loan recipients will create a sense of discipline to repay, he claimed while speaking to State House reporters at the Presidential media team’s “Meet The Press” event.
Read Also:Â Abia Government: Ikpeazu Behind Rising Political Tension
To ensure that every Nigerian maintains an accurate credit score, CREDICORP says that all lenders will be obliged to record loan repayments.
“More importantly, loan defaulters will face consequences, but they will be structured and subtle rather than predatory,” he told reporters.
If it turns out that you owe money somewhere, you might not be allowed to renew your passport, even though you might wish to. The same is true when it comes to renting a home or renewing your driver’s license. There’s nowhere to hide.
This system makes sure that any loans that are taken out and not paid back will be tracked and retrieved, regardless of whether they are from a commercial bank, FinTech, or microfinance organization.
“Everyone having a credit score is essential. There won’t be any hiding places anymore because we are compiling extensive financial and non-financial data to create a structural algorithm that will grade every Nigerian.
