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Credit penetration in Nigeria has increased to 14%, largely driven by the efforts of CRC Credit Bureau Limited, the nation’s leading credit bureau company. Despite this progress, Nigeria’s credit penetration still lags behind global standards.
During the CRC Finance and Credit Conference 2024 in Lagos, the Group Managing Director/CEO of CRC Credit Bureau Limited, Dr. Tunde Popoola, highlighted the significant strides made over the last 15 years. The conference, which also marked the company’s 15th anniversary, focused on “Sustainable Financing Options: Innovations in Credit Risk Management.”
Popoola noted that only 33 million Nigerians currently have credit scores recorded in CRC’s database, indicating the need for greater efforts to expand credit access across the country. He revealed that 29.4 million credit searches were conducted in 2023, with over 10 million searches already conducted in Q1 2024. Since its inception in 2010 with a single product, CRC has expanded to offer 18 products across various lending value chains.
Despite the challenges, CRC Bureau Limited, in collaboration with regulators such as the Central Bank of Nigeria (CBN), has made commendable progress in improving credit access. Popoola stated, “Today, millions of Nigerians can secure loans through their phones, with lenders relying on CRC for credit information. The Credit Reporting Act of 2017 and the support from the CBN have significantly boosted credit penetration over the years.”
Reflecting on CRC’s journey, Popoola recalled that the company received its operating license from the CBN in January 2010. Initially offering credit reports, CRC has since introduced numerous products, although their adoption by organizations and banks remains limited.
The Chairman of CRC Board of Directors, Joel Owoade, addressed the economic challenges affecting the profitability of companies in Nigeria, noting many have reported losses up to Q1 2024. He proposed that sustainable financing is crucial for economic stability and emphasized the importance of risk management in preventing bad loans for banks.
Olaniyi Yusuf, Managing Partner of Verraki, discussed the impact of artificial intelligence (AI) on global inequality during the fourth industrial revolution. He argued that AI is expected to create more jobs than it displaces and stressed the need for regulatory frameworks that support AI innovation without stifling it. “Proper infrastructure is essential, and while failures will occur, they should motivate AI start-ups to improve,” Yusuf said.
Dr. Adetona Adedeji, Acting Director of the Banking Supervision Department at CBN, noted that at 14% credit penetration, Nigeria still has a long way to go. He emphasized that credit must be sustainable and revolving to support economic growth. Represented by Olubunmi Ayodele-Oni, Assistant Director of Banking Supervision, Adedeji highlighted CBN’s initiatives to promote sustainable credit, including mandating other financial institutions to provide credit reports and establishing the National Collateral Registry, Global Standing Instruction, and approving Credit Bureaus.
“A good credit score can help borrowers secure lower interest rates, providing lenders with a comprehensive view of the borrower before transactions,” Adedeji concluded.
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