There is enormous hope on the horizon for businesses in Nigeria as the Consumer Credit sector comes alive with the commencement of engagements with Nigeria’s lending ecosystem.
No fewer than 19 commercial banks were at the first session convened recently by Nigeria’s apex bank, the Central Bank of Nigeria (CBN) during which CREDICORP shared its mission and its unique offering of wholesale capital and credit guarantees for lenders who are committed to accelerating consumer credit access to Nigerians at scale.
President Bola Ahmed Tinubu during his presidential campaign leading to the 2023 elections, among other things, had promised to rejuvenate the Consumer Credit Sector. In fulfillment of the promise, he established the Nigerian Consumer Credit Corporation (CREDICORP) with a specific focus on facilitating the rejuvenation and operation of Consumer Credit services.
Consumer Credit serves as the lifeblood of modern economies, enabling citizens to enhance their quality of life by accessing goods and services upfront and paying responsibly over time.
Consumer Credit also facilitates crucial purchases such as homes, vehicles, education and healthcare, essential for ongoing stability to pursue their aspirations.
According to the Chief Executive Officer of CREDICORP, Mr. Uzo Nwagba in a statement to the media on Friday, through responsible repayment, individuals build credit histories and unlock more opportunities for a better life., adding that the increased demand for goods and services stimulates local industry and job creation.
Sequel to the convening of the first session of the financial institutions by the CBN with respect to Consumer Credit Initiative, CREDICORP has reportedly received important feedback which would enable it fine tune its rollouts of financial products. For this development, CREDICORP has remained appreciative of CBN’s effort for convening the session in Lagos with the Chief Risk Officers and leaders of Consumer lending across the banks.
The financial institutions which are critical partners with CREDICORP include deposit money banks, microfinance, fintechs and cooperatives. CREDICORP intends to achieve its mandate through strengthening Nigeria’s credit reporting systems, ensuring every economically active citizen has a dependable credit score. This score becomes personal equity they build, facilitating access to consumer credit.
Another way is through offering of credit guarantees and wholesale lending to financial institutions dedicated to broadening consumer credit access currently and promoting responsible consumer credit as a pathway to an improved quality of life, fostering a cultural shift towards growth and financial responsibility.
Notably, the dawn of the consumer credit services is in sync with President Tinubu’s belief that every hardworking Nigerian should have access to social mobility with Consumer Credit playing a pivotal role in achieving this vision.
Meanwhile, the CREDICORP portal for expression of interest has been opened to Nigerians. Interested citizens can visit www.credicorp.ng to express interest and inform the Corporation of their credit needs.
