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Credit penetration in Nigeria has increased to 14 percent, mainly due to the efforts of CRC Credit Bureau Limited, the leading credit bureau company in Nigeria.
Despite the growth in penetration, it still falls below global expectations.
The Group Managing Director/CEO of CRC Credit Bureau Limited, Dr. Tunde Popoola, revealed this information during the CRC Finance and Credit Conference 2024 in Lagos.
He mentioned that Nigeria has made significant progress in credit penetration over the past 15 years.
The conference theme, which coincided with the company's 15th anniversary, was centered around 'Sustainable Financing Options: Innovations in Credit Risk Management.'
Popoola highlighted that only 33 million Nigerians have their credit scores recorded in CRC Credit Bureau Limited's database, emphasizing the need to involve more Nigerians in accessing credit.
He stated that out of the 33 million Nigerians with credit scores, 29.4 million searches were conducted in 2023, with over 10 million searches already done in Q1 2024.
CRC has expanded from offering just one product in 2010 to now offering 18 products across all lending value chains.
Reflecting on CRC Credit Bureau Limited's journey so far, Popoola shared, “15 years ago, CBN granted us a license to operate. In January 2010, CRC was officially launched. Our main objective is to facilitate access to credit in Nigeria. While our initial product was credit reports, we have since introduced many more, although only a few organizations/banks are currently utilizing them.”
Earlier, Chairman of CRC's Board of Directors,Joel Owoade, expressed concern over the economic instability affecting companies in Nigeria, with many reporting significant losses up to Q1 2024.
Proposing a solution, he emphasized, “Sustainable financing is crucial for the economy. Risk management is essential to mitigate bad loans for banks.”
During his presentation on ‘Artificial Intelligence Paradox: From Solution to Risk,’ Olaniyi Yusuf, Managing Partner of Verraki, highlighted global inequality as a primary concern in the AI-driven fourth industrial revolution, emphasizing the importance of a regulatory framework in Nigeria to benefit from AI without stifling innovation.
The acting Director of the Banking Supervision Department at CBN, Dr. Adetona Adedeji, emphasized the need for sustainable credit expansion in Nigeria, pointing out that the economy still has a long way to reach optimal credit penetration at 14 percent.
Discussing CBN's efforts to promote sustainable credit, Adedeji mentioned measures such as the National Collateral Registry, Global Standing Instruction, and approval of Credit Bureaus to enhance credit accessibility.
He also stressed the importance of a good credit score in securing loans at favorable interest rates, highlighting the significance of lenders assessing borrowers globally before transactions.
