CrediCorp: Total amount in consumer credit requests hit ₦1.3trn

The Nigerian Consumer Credit Corporation has recently made headlines with over 1 million Nigerians submitting expressions of interest for consumer credit in just one week. This surge in demand translates to a whopping 1.3 trillion naira, with a notable bias towards men. Uzoma Nwagba, the Managing Director and CEO of the corporation, sat down with CNBC Africa to delve deeper into the insights and nuances of this remarkable development. Nwagba highlighted the challenges faced by the current credit infrastructure in Nigeria, emphasizing the need for a more robust system that incorporates consumer lending data into credit registries. He pointed out that while the credit registries hold information on business lending, the data on consumer lending is limited, creating a gap in the system. Despite these hurdles, the Nigerian Consumer Credit Corporation is on a mission to enhance credit access for 50% of economically active Nigerians by 2030. Nwagba outlined the steps being taken to achieve this goal, including engaging with various financial institutions through credit guarantees and wholesale lending. By catalyzing the purchase of Nigerian goods through targeted credit support, the corporation aims to stimulate economic growth and empower individuals to invest in their businesses. The recent expressions of interest campaign was a significant first step towards identifying the credit needs of the population. With close to 1.9 million submissions received, the data revealed key insights into the diverse requests for consumer credit. Civil servants expressed a desire for home ownership, while students sought financial assistance for their education fees. Surprisingly, nearly half of Nigerians identified as entrepreneurs, highlighting the strong demand for discretionary credits to support business ventures. Nwagba also shed light on the vital role of consumer credit in enabling entrepreneurship, citing examples of how entrepreneurs often rely on credit cards to kickstart their businesses. These insights underscore the importance of inclusive and accessible consumer credit in fostering economic development and entrepreneurship in Nigeria. As the Nigerian Consumer Credit Corporation continues its journey to revolutionize credit access, it remains committed to building a sustainable and robust credit infrastructure that will support the financial inclusion and empowerment of millions of Nigerians.