The Nigerian government has moved to adopt a unified national credit system that links individuals’ credit score to their National Identification Numbers (NIN), to enable financial institutions to access comprehensive and traceable credit profiles of customers seeking loans.
This was announced by Uzoma Nwagba, Managing Director of the Nigerian Consumer Credit Corporation (CREDICORP) during a press engagement at the State House in Abuja, on Tuesday, June 17.
He stated that all financial institutions including banks, fintechs, and microfinance are to report citizens’ credit history, including loan repayment, linked to their NIN. Nwagba added that the move will transform credit accessibility by encouraging inclusive and responsible borrowing, and reward financial discipline.
“This is a fundamental shift in how credit works in Nigeria. Your NIN will now serve as the anchor for your credit profile. Whether you borrowed from a commercial bank, a microfinance institution, or a digital lender, that data will now be traceable and carry real consequences,” Nwagba said. “If you default on your loan, it could affect your ability to renew your passport, your driver’s license, or even rent a house. There will be no hiding place.”
Financial institutions have varying factors for assessing creditworthiness of customers. Traditional banks rely on rule-based scoring using turnover thresholds and BVN-linked credit histories (accessible through the Central Bank’s credit check software) to evaluate creditworthiness of corporate entities or customers with structured income, mostly excluding regular customers due to high-risk of default. Fintechs leverage algorithms and digital footprints, mostly smartphone data to assess credit score, but often charge higher interest rates to offset the risk of loan defaults.
The proposed NIN-linked system will function as a centralised credit bureau, open to all financial institutions and key government agencies, meaning credit behaviour could also influence access to non-financial services like passports and housing, according to Nwagba.
While the government’s new system could boost banks’ willingness to extend credits to regular customers, it could also be a win for fintechs as credit reporting will now be more transparent and consequence-flagged.
Nwagba urged financial institutions to commit to the national credit framework to close the country’s credit gap estimated at ₦183 trillion, which also requires private sector participation.
“With the right infrastructure and transparency, lenders will be more confident, interest rates will drop, and Nigerians will finally have access to affordable credit,” Nwagba said.
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