FG Devises Plan to Improve Purchasing Power of Nigerians Through Access to Credits
- The federal government is working with Nigeria's regulatory agencies to deliver the project on credit finance
- The project is aimed at promoting inclusivity and improving access to finance in the country
- The committee would help propose a regulatory framework to improve the consumer credit landscape.
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
To boost market efficiency and productivity for economic growth, the federal government seeks to improve Nigerian citizens' access to credit finance.
Source: Getty Images
Doris Uzoka-Anite, the minister of industry, trade, and investment, stated this at the inauguration of the technical working committee in Abuja by the Presidential Council on Industrial Revitalisation.
The Committee is led by Olawale Edun, the minister of finance and coordinating minister of economy, with assistance from Uzoka-Anite and Dr. Bosun Tijani, the minister of communications, innovations, and digital economy.
Other members were also drawn from vital regulatory agencies such as the Central Bank of Nigeria (CBN), the National Identity Management Commission (NIMC), the National Insurance Commission (NAICOM), the Bank of Industry (BOI), the Federal Inland Revenue Service (FIRS), the Federal Competition and Consumer Protection Commission (FCCPC) and others.
According to a Tribune report, they all agreed on a five-month timeline to achieve various objectives, including promoting inclusivity and improving access to finance.
An efficient consumer credit system is germane.
A strong consumer credit system is the cornerstone of a robust economy, according to Uzoka-Anite.
She said that giving customers instant access to credit and enabling them to make larger purchases than they are capable of helps to increase market efficiencies and close the gaps in consumption and productivity.
She stated that the need for a well-structured consumer credit system has severely hampered financial inclusion and economic development.
Anite described the establishment of the committee on industrial revitalisation by the Presidential Council as a timely and strategic initiative.
She said this is aimed at investigating Nigeria's present state of consumer credit. In addition, she said this would help identify challenges prevalent among consumers and financial institutions.
Similarly, according to the minister, the committee would help propose a coherent regulatory framework that can significantly improve the consumer credit landscape.
The statement read:
“Nigeria has numerous financial institutions and credit schemes, but many Nigerians still face substantial hurdles in accessing credit due to stringent eligibility criteria, high-interest rates, a lack of awareness or understanding of credit processes, and inadequate credit available for lending.”
Earlier, the CBN instructed Nigerian financial institutions to display their corporate names on all their online business platforms, which include websites, portals, and mobile apps.
The bank said that not displaying the legal name on these online platforms has led to difficulty for some customers needing assistance.
CBN issues fresh orders to Zenith, Access, and others on customer service
Legit.ng earlier reported that to attract more people into the financial system, the CBN directed banks to raise the quality of their products and services.
Olayemi Cardoso, the CBN governor, said this at the release of the 2023 EFInA Access to Finance (A2F) Survey results in Lagos.
The CBN governor said the Nigerian financial system has dramatically increased in both scale and depth, especially in products, instruments, market expansion, and payment infrastructure, among other things.
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Source: Legit.ng
