The Federal Government has announced a big new plan. It will connect people’s loan history (how they borrow and repay money) to their National Identification Number, also known as NIN. This means your NIN will now be used to track if you are paying back your loans.
The head of the Nigerian Consumer Credit Corporation, CREDICORP, Uzoma Nwagba, shared this news during a government event in Abuja.
How will it work?
So if you take a loan from a bank, a loan app, or a cooperative, the record will go into one system and your NIN will be the ID used. So even if you change your phone number or move to another state, your loan record will follow you.
Why is this important?
Before now, many people would take loans and never pay back, especially from online loan apps. This new system will make sure that everyone is responsible for paying what they owe. If you do not repay your loan, it could affect:
• Getting or renewing your passport
• Getting a driver’s license
• Renting a house
• Getting another loan in the future
What is a credit score?
It is like a report card for how you handle money. If you always pay your loans on time, you will have a good score. If you do not, your score will be low. A good score helps you get more loans with less stress.
Will this only affect people with bank accounts?
No. Even if you use small loan apps or borrow from other places, your record will still be tracked. The system will also look at other things like if you pay your bills or rent regularly.
Why is the government doing this?
President Bola Tinubu wants to make life better for Nigerians. One way is by making it easier for people to get loans. But that only works if people are honest and pay back what they borrow.
How will this help the country?
The government says if more people can get fair loans, they can use the money to grow their business, buy Nigerian made goods, and create more jobs.
What about young people?
There is a special program called YouthCred that will help young Nigerians, including NYSC members and people aged 18 to 35, get access to small loans in a responsible way. The aim is to help young people build good money habits.
The government wants to make sure that every Nigerian adult is part of a fair and honest loan system. If you pay back loans, you will get more chances to succeed. If you do not, there will be clear consequences.
In Simple Terms:
Your NIN will now be connected to how you borrow and repay money. If you are responsible with money, this will help you. If you are not, it could make life harder. This is a new way to make sure everyone is treated fairly in the loan system.
