Presidential Council Initiates Framework for Consumer Loans in Nigeria

Presidential Council Initiates Framework for Consumer Loans in Nigeria
EPN

Updated on December 20, 2023

The Presidential Council on Industrial Revitalization has taken a significant step by establishing a Technical Working Group, comprising key regulatory bodies such as the Central Bank of Nigeria (CBN), the National Identity Management Commission (NIMC), and the Federal Competition and Consumer Commission (FCCPC), National Insurance Commission (NAICOM), the National Institute of Credit Administration (NICA), the Bank of Industry (BOI), and the Federal Inland Revenue Service (FIRS).

The committee, with a five-month timeline, aims to develop a comprehensive framework for consumer credit in Nigeria.

Minister of Industry, Trade, and Investment, Dr. Doris Nkiruka Uzoka-Anite, highlighted the specific objectives, including increasing consumer credit uptake, establishing a sustainable credit system aligned with global standards, and improving supporting infrastructure for enhanced credit operations.

During the inaugural meeting, Minister Uzoka-Anite emphasized the importance of an efficient consumer credit system for economic success. She addressed existing challenges, such as stringent eligibility criteria, high interest rates, identity-related issues, and a lack of awareness regarding credit processes, hindering financial inclusion.

The Technical Working Group, chaired by Minister Uzoka-Anite, adopts a consultative approach, leveraging the experience and knowledge of the credit ecosystem to identify and address the loan industry challenges. The initiative is seen as timely and strategic, aiming to propose and implement a regulatory framework to significantly enhance the consumer credit and loan landscape.

This development is part of broader efforts by the Presidential Council for Industrial Revitalization, chaired by Minister of Finance and Coordinating Economy, Mr. Olawale Edun, with the support of Dr. ‘Bosun Tijani, Minister for Communications, Innovations, and Digital Economy. The goal is to foster economic prosperity by overcoming hurdles and promoting accessibility to credit and loans for Nigerians.

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