Dr Mahamudu Bawumia launched myCreditScore in November 2024
Nigeria has announced plans to introduce a credit scoring system through its national identification card.
In Ghana, former Vice President, Dr Mahamudu Bawumia advocated for a credit scoring system using the Ghana Card as a unique identifier for individuals.
This move, he noted, would open access to easy credit, ensuring credibility by using Ghana Card.
Dr Bawumia, with the support of the Bank of Ghana, successfully launched the credit scoring system in November 2024.
A few months down the lane, West African neighbour, Nigeria, has now adopted Dr. Bawumia’s concept.
The Nigerian government has announced that it is linking its citizens’ credit reference or credit score to their National Identification Number (NIN) to establish a centralised national credit bureau.
This landmark is to ensure Nigeria’s financial stability, unlocking credit for consumers and eradicating corruption.
The move is driven by the Nigerian Consumer Credit Corporation (CREDICORP) and it will consolidate credit data across commercial banks, FinTechs, microfinance institutions and other lenders to create a comprehensive credit database for every Nigerian through the unique national identity number exactly as Bawumia proposed for Ghana.
Addressing the press at the State House, Abuja, Managing Director of CREDICORP, Uzoma Nwagba, explained that linking credit scores to the NIN will have real-life benefits for Nigerians.
According to him, all lenders will be required to report loan repayments, guaranteeing that every Nigerian maintains an accurate credit score.
“More importantly, there will be consequences for loan defaulters but these will be subtle and structured rather than predatory. Maybe you want to renew your passport but if something shows that you owe money somewhere, you may not be able to proceed. The same applies to renewing your driver’s license or renting a house. There is no hiding place.”
“This system ensures that whether your money is in a commercial bank, FinTech or microfinance institution, loans taken and not repaid will be tracked and recoverable. The essence is for everyone to have a credit score. We are gathering comprehensive financial and non-financial data to develop a structural algorithm that will score every Nigerian; there will be no hiding place for anyone again,” he said.
Individual credit scoring system is a common practice in the advanced world but rarely practiced in Africa, thereby limiting access to easy credit for workers.
In November 2024, Dr. Bawumia launched the “myCreditScore”, a Bank of Ghana-backed individualised credit scoring system for Ghana.
Following the defeat of the New Patriotic Party in last year’s general elections, not much has been heard about the myCreditScore which the former Vice President launched.
AME
