A new report from Credicorp Nigeria has revealed that the country would need approximately N183 trillion to properly implement and sustain functional consumer credit schemes.
This staggering figure was disclosed by Chinenye Nwagba, a senior executive at the financial services firm, during a recent economic forum in Lagos.
Nwagba explained that this substantial financial requirement reflects the scale of investment needed to establish a robust credit infrastructure, including credit bureaus, risk assessment frameworks, and financial literacy programs.
He emphasised that Nigeria’s current consumer credit penetration remains critically low at less than 5% of GDP, compared to developed economies where consumer credit often exceeds 60% of GDP.
The Credicorp executive outlined several challenges hindering Nigeria’s consumer credit growth, including inadequate credit history systems, low financial inclusion rates, and cultural resistance to debt financing.
He noted that bridging this gap would require coordinated efforts between financial institutions, regulatory bodies, and the government to create an enabling environment for credit expansion.
Nwagba proposed a multi-year implementation plan involving public-private partnerships to gradually build the necessary financial architecture. This would include strengthening credit reporting systems, developing alternative credit scoring models for the informal sector, and implementing consumer protection mechanisms.
The report suggests that achieving this transformation could significantly boost Nigeria’s economic growth by increasing consumer purchasing power and stimulating demand across key sectors. However, Nwagba cautioned that such ambitious credit scheme expansion must be carefully managed to prevent unsustainable debt levels among consumers.
Financial experts at the forum agreed that while the N183 trillion target appears daunting, phased implementation could make the goal achievable over the next decade, potentially revolutionising Nigeria’s credit schemes and financial services landscape.
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cc: Daily Post Ng
