The Nigerian Consumer Credit Corporation (CREDICORP) on Thursday disclosed that a total of 151 financial institutions comprising commercial banks, fintechs, and Microfinance Banks have signed up to be part of its consumer credit scheme.
According to the Corporation, the financial institutions are those that have completed their expression of interest (EOI) in the last one month.
CREDICORP in a document providing insights on the EOI said it would soon shortlist the qualified ones among the institutions for the pilot phase of the scheme to pave the way for disbursement of the consumer loans.
The institutions
Providing insights into the financial institutions that have expressed interest, CREDICORP said the 151 lenders include 85 that are licensed by the Central Bank of Nigeria (CBN), and 66 that are not licensees of the apex bank.
A further breakdown of the 85 CBN-licensed institutions shows that six are commercial banks, eight are National Microfinance Banks, while 22 are Finance Companies comprising top fintechs. Others include three Primary Mortgage Banks, 34 Unit Microfinance Banks, and 12 State Microfinance Banks.
“The 85 institutions that completed the EOI so far report over 1.5 million registered and served consumer credit customers on their books.
“This EOI process serves as an organic survey to understand the consumer credit portfolios of the financial institutions, their regulatory compliance, and how the consumer credit sector can be best supported,” CREDICORP stated.
Plans toward consumer credit
As part of moves to perfect the consumer scheme, CREDICORP recently announced a partnership with the National Identity Management Commission (NIMC) to fast-track the building of credit scores for all Nigerians with the National Identification Number (NIN).
The CREDICORP disclosed this recently, noting that the partnership was sealed during its Managing Director, Engr. Uzoma Nwagba’s working session with the Director General of NIMC, Engr. Bisoye Coker-Odusote, earlier this week.
To accelerate the process, CREDITCORP said the two organisations have set up a task team to work with regulators, financial institutions, and credit registries.
“The two organizations, having examined existing infrastructure, set up a task team to work closely with the regulators, financial institutions, and credit registries to accelerate consumer credit reporting and mainstream credit scores for Nigerians,” it stated.
What you should know
President Bola Tinubu announced the launching of the first phase of the Consumer Credit Scheme on April 21, a programme designed to offer credit facilities to working citizens in the country.
- The President’s special adviser on media and publicity, Ajuri Ngelale, said the first phase of the scheme will begin with civil service members before extending to the main public.
- Upon the opening of the portal for the first phase of the scheme in May, the Managing Director and Chief Executive Officer (CEO) of the Corporation, Uzoma Nwagba, declared that 1.6 million had indicated interest in getting loans.
- As of now, the Corporation has yet to announce the date of disbursement to those who have applied as well as the interest rates and tenure of the loans.
- The scheme is expected to facilitate vital investments like housing, transportation, education, and healthcare, crucial for sustaining stability and pursuing personal aspirations.