Connect with us

News

Govt opens Nigerians’ access to consumer credit with N100b

Published

on

I didn’t come to look for money, I came to work — Tinubu
President Bola Ahmed Tinubu
Spread the love

• Govt opens Nigerians’ access to consumer credit with N100b

A Consumer Credit Scheme to put money in the pockets of Nigerians, boost manufacturing and stimulate economic growth has been rolled out by the Federal Government.

Presidential spokesman Ajuri Ngelale on Wednesday announced the beginning of the plan following its approval by President Bola Ahmed Tinubu.

It is a cardinal campaign promise by the President.

According to Ngelale, apart from empowering Nigerians to improve their quality of life, the programme will also lead to access to goods and services.

The first phase of the programme will be available to civil servants before its extension to other Nigerians.

Ngelale explained: “Consumer credit serves as the lifeblood of modern economies, enabling citizens to enhance their quality of life by accessing goods and services upfront, paying responsibly over time.

Maduka College Advert

“It facilitates crucial purchases, such as homes, vehicles, education, and healthcare, essential for ongoing stability to pursue their aspirations.

“Through responsible repayment, individuals build credit histories, unlocking more opportunities for a better life.

“Additionally, the increased demand for goods and services will stimulate local industry and job creation.

“The President believes every hardworking Nigerian should have access to social mobility, with consumer credit playing a pivotal role in achieving this vision.

“The Nigerian Consumer Credit Corporation (CREDICORP), which will drive the scheme, will achieve its mandate through the following:

*Strengthening Nigeria’s credit reporting systems, ensuring every economically active citizen has a dependable credit score. This score becomes personal equity they build, facilitating access to consumer credit.

*Offering credit guarantees and wholesale lending to financial institutions dedicated to broadening consumer credit access.

*Promoting responsible consumer credit as a pathway to an improved quality of life, fostering a cultural shift towards growth and financial responsibility.

“In line with the President’s directive to expand consumer credit access to Nigerians, CREDICORP has launched a portal for Nigerians to express interest in receiving consumer credit.

“This initiative, in collaboration with financial institutions and cooperatives nationwide, aims to broaden consumer credit availability.

“Working Nigerians interested in receiving consumer credit can visit www.credicorp.ng to express interest. The deadline is on May 15.”

In an earlier comment on the scheme, Minister for Budget and Economic Planning, Abubakar Bagudu, noted that N100 billion is included in this year’s budget for the programme

He said: “We put N100 billion fund in the budget to support consumer credit.

“This is important because the manufacturing sector is struggling with two challenges: efficiency of production and finding someone who can buy.

“The introduction and support of consumer credit, we believe, will help in the revival of our manufacturing sector to meet international standards. It is a catalytic fund that is expected to have significant growth.”

House of Representatives Speaker Tajudeen Abbas, and economic experts, such as Dr. Muda Yusuf, Mr. Olatunde Amolegbe and Mr. David Andori, gave kudos to the scheme.

The absence of recent and relevant credit demand data poses challenges to operators and investors, leaving them “market-blind” in estimating Nigeria’s actual consumer credit market size, according to experts.

To address this issue, Stears, a leading data analysis firm, has developed a credit market mapping model that leverages robust data and innovative methodologies to comprehensively understand Nigeria’s consumer credit market.

This includes not only assessing the formal market but also offering insights into the substantial informal credit market, thus identifying opportunities for credit providers and investors within this segment.

The experts added that consumer credit can have both positive and negative impacts on the economy.

On the positive side, it can stimulate economic growth by increasing consumer spending. When individuals have access to credit, they are more likely to make purchases, driving demand for goods and services and leading to increased production and job creation.

This, in turn, can boost overall economic activity and contribute to higher levels of economic growth.

However, it is crucial to manage consumer credit responsibly to avoid negative consequences.

Excessive consumer debt can lead to financial instability, as individuals may struggle to repay their debts, resulting in defaults and bankruptcies.

These repercussions can have a ripple effect on the economy, causing lenders to incur losses and reducing their willingness to extend credit in the future.

Moreover, high levels of consumer debt can hinder long-term economic growth by reducing savings and investment.

Yusuf, Amolegbe, Andori on the scheme

Economic and finance experts described the takeoff of the consumer credit scheme as laudable.

They noted that it has the potential to stimulate the economy and enhance the quality of living of average Nigerians.

They said a functional credit scheme not only provides an opportunity to lift a substantial part of the population from poverty but also to create massive opportunities for the development of the productive and financial services sectors.

They, however, called for supportive regulatory and policy frameworks to make the scheme sustainable and successful.

The experts that spoke yesterday include Chief Executive Officer of the Centre for Promotion of Private Enterprise (CPPE); Dr Muda Yusuf; Managing Director, Arthur Steven Asset Management, Mr Olatunde Amolegbe and Managing Director, HighCap Securities, Mr David Adonri.

Yusuf said the introduction of the consumer credit scheme is a welcome development as it would boost consumer demand.

“One of the major shortcomings of our financial system is the absence of consumer credit.  Where it exists, the conditions are often very difficult to meet.

“The resultant enhancement of purchasing power would be beneficial to other sectors of the economy.  We need robust consumption capabilities to complement production.

“But the implementation framework should be such that would deliver the desired outcomes,” Yusuf said.

Amolegbe noted that the Nigerian economy cannot reach its full potential if it remains a largely informal and cash-based economy.

According to him, the availability of credit means consumers can leverage their incomes in other to buy more, thus indirectly boosting production, capacity utilisation and employment

“It will also have a significant social economic impact as it has the potential to lift many people out of poverty by providing them credit to finance their small businesses and trades,” Amolegbe, a past president of the Chartered Institute of Stockbrokers (CIS), said.

He, however, pointed out the need to ensure a proper and workable framework, especially when the scheme becomes accessible to operators in both formal and informal sectors.

“The pitfalls include: how do you properly capture and monitor borrowers to ensure they make good on their commitments in a country dominated by people operating in a largely unstructured and informal environment?

“If we can overcome this hurdle, then the benefits of this scheme will be clear for all to see within a short period,” Amolegbe said.

Adonri said the scheme was in line with the global operating environment, noting that it has the potential to boost the economy if well managed.

“Modern economies run on credit. Therefore, it is a commendable initiative to make consumer credit readily available in Nigeria.

“However, it may aggravate the galloping inflation in Nigeria now. The main economic challenge facing Nigeria comes from the excessive supply gap due to the near collapse of domestic agricultural and industrial production.

“Consumer credit is a potent tool for stimulating consumer pull, especially when an economy is be-labored with unsold inventory,” Adonri said.

He said macroeconomic policy thrust now ought to be focused on the mobilisation of credit to boost local production to close the yawning supply gap, as a condition precedent to support the consumer credit system.

News

State Police: Mbah presses for financial autonomy, investment in technology

Published

on

Enugu Governor, Dr Peter Mbah
Spread the love

…Allays fears of abuse, says no one would be governor forever

Governor Peter Mbah of Enugu State has called for financial autonomy and investment in modern security infrastructure for state police services when created, stressing the need for any legal framework for state police to take into account the need for national standards, national support, local capability and local decision-making.

Mbah made his position known during the town hall themed, “Building a National Consensus for State Police and National Security,” organised by Arise News in Abuja on Thursday.

The governor emphasised that prioritising security through adequate funding for state police services and investment in technology would enable those responsible for security at the subnational level to deliver the expected outcomes.

“The importance of funding the state police system effectively cannot be overemphasised. And having a State Police Service Commission that has a first-line charge on the Consolidated Revenue Fund is in order.

“Many other institutions in the states – the judiciary and the legislature – have the first-line charge. The key thing is providing enough funding to be able to sustain the state policing system,” he said.

Maduka College Advert

Sharing the Enugu State experience on the importance of prioritising security, he recalled that at the inception of his administration in 2023, the state was under siege, with nightlife gone, some areas even in the state capital barricaded, Mondays gone, while many students lost an entire academic year, as they could not sit important final-year examinations due to the illegal sit-at-home orders.

“If the Enugu experience is anything to go by, we came into office recognising that we had made commitments to eradicate poverty, to grow the economy exponentially, to make Enugu State the preferred destination for business, living, and investment.

“We immediately recognised that if we didn’t address the security challenges, we could not achieve those objectives. Therefore, we had to invest hugely in technology, in building a Safe City Surveillance System with CCTV cameras that are AI-enabled, as well as having both static and mobile cameras. All these come with huge costs.

“But the human element is also important, which is essentially why we had to set up the Distress Response Squad (DRS). As a governor, you want immediate action because matters of security are measured in minutes. You must be in a position where you are able to act swiftly.

“So, you must build the capability to first nip crime in the bud. But where there has been a breach, you must have the capacity to act swiftly. And if the Enugu experience is anything to go by, that essentially is what we did that enabled us to drive down violent crime by over 90 per cent.

“Therefore, when you talk about funding, you can see that the states are already carrying quite a huge burden in terms of funding, because you are investing in technology.

“We also ensured that there is a unified communication system between the agencies. Our Command and Control Centre houses all the security agencies in the state – the police, the army, and the Department of State Services. They all have a channel of communication,” he stated.

Governor Mbah also called for a constitutional provision that guarantees state police while preserving the details for an Act of the National Assembly to allow for amendments in the future without going through the rigours of constitutional amendment.

“So, in amending the Constitution, we must, by all means, make sure that it is not verbose. There should be a provision that allows us to reform the system in future, if needed, when we have tried it,” he said.

Mbah also stressed the need to focus on operational authority for state police rather than on watering down the powers of governors, who would be in office for a maximum of eight years only.

“By the way, there is this idea that governors are likely to abuse state police and that we should, therefore, do as much as we can to water down their powers.

“Nobody is a governor forever. We are also going to one day leave that office and become regular citizens. We just want to be sure that there is enough operational authority given to the governors so that you do not give someone a performance target without providing him or her with the control needed to achieve the required outcome,” he concluded.

Continue Reading

News

FG raises Soldiers’ Minimum Salary from N49,000 to N100,000 per month — Defence Minister Musa

Published

on

Minister of Defence, Christopher Musa
Spread the love

The Minister of Defence, Christopher Musa, has disclosed that the Federal Government increased the minimum monthly salary of Nigerian soldiers from N49,000 to N100,000 as part of ongoing efforts to improve the welfare of military personnel.

Musa made the disclosure during an interview with News Central on Wednesday ahead of the station’s NC Exclusive programme scheduled for Friday.

He described the development as one of the welfare improvements introduced by the current administration for military personnel.

“When they started, a soldier was collecting N49,000 monthly. We tried so hard, now he’s collecting N100,000,” the minister said.

For decades, concerns over poor salaries, inadequate accommodation, delayed benefits and rising living costs have dominated discussions on military welfare.

Musa also dismissed allegations that soldiers were being poorly fed, describing claims circulating on social media as misleading.

Maduka College Advert

Referring to a viral video involving a military officer identified as Justice Crack, he alleged that the footage was deliberately manipulated to create a false impression about the quality of meals served to troops.

“The soldier’s food was okay. There was meat; there was all this. But he told them to pull out those things and make it look as if those things were not there,” he said.

The minister’s remarks come as the Federal Government continues to pursue a mix of welfare reforms, increased security spending and renewed military operations aimed at improving the effectiveness of troops battling insecurity across the country.

But calls persist for greater investment in equipment, intelligence gathering and personnel welfare.

Musa maintained that Nigeria’s defence allocation remains inadequate to meet the enormous demands placed on the Armed Forces.

Responding to a question on whether the current defence budget was sufficient, he replied, “It’s not enough.”

He noted, however, that the government would continue investing in the welfare and operational capacity of the military to enable personnel to respond more effectively to the country’s security challenges.

The minister also advocated tougher punishment for kidnappers, calling for the introduction of the death penalty to discourage the growing wave of abductions across the country.

According to him, existing sanctions have failed to deter perpetrators.

“I think we should do that. There must be deterrence. The laws are soft, and that’s why people take advantage.If they know once you commit an offence, there must be punishment,” he said.

Speaking on the recent abduction of schoolchildren in Oyo State, Musa alleged that the kidnappers were attempting to pressure the military into releasing some of their commanders currently in custody.

Describing the incident as unfortunate, he said the abductors had resorted to using innocent children as bargaining tools.

“It’s a very sad event. Unfortunately, bad things do happen. For whatever reason, they are looking for leverage because we have some of their commanders with us, and they feel taking these kids and holding them to ransom will make us release their commander,” he said.

He further claimed that the kidnappers had threatened to kill the victims should security forces move closer to their hideout.

“They are now threatening that if we come any closer, they’re going to kill all the kids,” the minister added.

Continue Reading

News

2027: ‘Peter Obi must not die’ — Igbo Group warns of catastrophic consequences

Published

on

Peter Obi, Presidential candidate of NDC
Spread the love

Njiko Igbo Forum, an affiliate of Ohanaeze Ndigbo, has issued a stern warning ahead of the 2027 general elections, cautioning that it will be catastrophic should anything happen to Mr Peter Obi.

It could be recalled that Obi, on Wednesday, raised the alarm that his life was under threat.

The presidential candidate of the Nigeria Democratic Congress, NDC, raised fears that he may not be alive in 2027 to be part of the election.

However, in a statement issued on Thursday, Rev Dr Okechukwu Christopher Obioha, Leader, Njiko Igbo Forum Nigeria, he warned that should anything happen to Obi or he was not in the ballot, the reaction and result would be very catastrophic.

Obioha said the caution was part of the decision taken during an emergency meeting held today, Thursday, in Enugu.

The Forum said, “That we have seen the viral video made by His Excellency, Mr Peter Gregory Obi, speaking on a number of issues, he expressed serious concern that his life is in danger.

Maduka College Advert

“For him to have gone to the extent of saying he might not be alive before the 16th of January 2027, speaks volumes both in our polity and in the country at large.

“We have seen him in the past, spoke about the federal government trying to frustrate and targeting him not to be in the ballot.

“We have also observed over a period of time that the presidency or the federal government led by President Tinubu does not want Peter Obi to be in the ballot.”

While drawing the attention of the Presidency, Nigeria and the world to those allegations, Njiko Igbo Forum declared that “if anything happens to Mr Peter Gregory Obi or finally his name is not in the ballot for the 16th January, 2026 presidential election, the reaction and result will be very catastrophic and may adversely affect the continued unity in diversity of this country Nigeria.”

It further stated that the Igbo had been very quiet, pushed to the wall, segregated against, marked out everywhere, chased about and even tried to take their possessions.

Njiko Igbo Forum cautioned that keeping quiet does not mean the Igbo are cowards.

It said the ruling government should not forget that for any democracy to thrive, there must be a viral opposition in the polity.

“There is no reason, for what we have seen in the process or polity in trailing Peter Obi and going to an extent of chasing him through all the political parties and now wanting to kill him.

“This outcry by Mr Peter Gregory Obi, must not be taken lightly and request as a matter of urgent National importance, that an urgent investigation panel be constituted to verify Mr Peter Obi’s allegations.

“We are strongly stating again that, nothing should happen to Mr Peter Gregory Obi.

“Yes, Chief Awolowo said, before Nigeria he was of the Yoruba Nation. The same way we are saying before Peter Obi is of Nigeria, he is of the Igbo.

“Mr Peter Gregory Obi will live and become the President of the Federal Republic of Nigeria in 2027,” it declared.

Continue Reading

Trending

Maduka College Advert