By Our Correspondent
The Federal Government of Nigeria has announced a major credit reform that will link citizens’ loan repayment records directly to their National Identification Number (NIN). Officials say the move is designed to strengthen accountability and reduce chronic loan defaults across the country.
Under the new framework, led by the Nigeria Consumer Credit Corporation (CREDICORP), banks, fintech lenders, and microfinance institutions will report borrowers’ repayment histories to a central national credit database. These records will be tied to the borrower’s NIN, creating a unified credit profile that follows individuals across all financial and public platforms.
CREDICORP explained that the reform aims to eliminate financial anonymity and ensure that individuals who repeatedly default on loans face consequences. Chronic defaulters may be denied government services such as passport issuance and driver licence renewal. Landlords and real estate operators will also be able to use the new system to screen prospective tenants, potentially limiting access to rental housing for individuals with poor credit histories.
The government describes the initiative as part of a broader push to promote responsible borrowing, expand consumer credit, and build a modern credit culture similar to those in advanced economies. Officials say a reliable credit scoring system will reduce non-performing loans and make it easier for responsible borrowers to access financing for business, housing, education, and other essential needs.
However, the policy has raised concerns among analysts and civil society groups, who warn of potential privacy risks, discrimination, and exclusion of low-income borrowers. Critics note that linking access to services such as housing and passports to credit performance could disproportionately affect citizens who rely on small, high-interest loans or who experience temporary financial hardship. Questions have also been raised about data security, error correction mechanisms, and safeguards to prevent misuse of personal information.
Despite the concerns, the Federal Government insists that the system will be fair and transparent, emphasizing that the credit bureau will help create a disciplined financial ecosystem that rewards responsible behavior while discouraging reckless borrowing.
As implementation details continue to unfold, Nigerians are watching closely to see how the reform will impact both lenders and everyday citizens, particularly in the areas of financial inclusion, consumer rights, and access to essential government services.
