Nigerian Government to Link Credit Scores to National ID Numbers
In a significant move for Nigeria's business landscape, the government has announced plans to integrate citizens' credit scores with their National Identification Numbers (NINs). This initiative aims to establish a unified and mandatory record of borrowing and repayment behavior, accessible across all financial institutions, including banks, fintech applications, and micro-lenders.
Uangba, the Chief Executive Officer of the Credit Corporation of Nigeria, revealed this development to journalists during the "Meet the Press" briefing organized by the presidential communications team at Aso Rock Villa, Abuja. He stated that the agency is currently developing a centralized national credit bureau. This bureau will provide lenders with real-time data, directly tied to each borrower's NIN.
President Tinubu is reportedly keen on this concept, which aligns with his vision of enabling Nigerians to achieve a decent quality of life without decades of arduous saving. "You see civil servants who are saving over the life of their service only to buy a home or build a house in retirement, in the twilight of their lives. So, we need to do away with that," Uangba explained, emphasizing that the primary goal is to improve the quality of life for citizens.
Beyond enhancing living standards, the initiative has two other key objectives. Firstly, it aims to stem corruption. Uangba posited that a significant portion of corruption, particularly within the civil service, stems from individuals lacking the upfront capital to afford a decent life. By providing greater access to consumer credit, the pressure on their current active income would be alleviated, thereby reducing the temptation for illicit practices. "You want to build a house, and you have to get ₦40 million upfront," he noted, highlighting how easier credit access could mitigate such pressures.
Secondly, the government hopes to catalyze industry. By deliberately channeling consumer credit towards the purchase of locally manufactured goods, the initiative seeks to boost domestic industries. This increased purchasing power for local products is expected to foster industrial growth and, consequently, create jobs.
"Improve lives, stem corruption, catalyze industry – these are practically the words of the president and the mandates that we got," Uangba concluded, underscoring the strategic importance of this new credit system.
I'm Aisha shehu
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