CEM ADVISORY| The Association of Enterprise Risk Management Professionals (AERMP) applauds the Federal Government of Nigeria’s introduction of the Consumer Credit Scheme, a significant milestone in promoting financial inclusion and economic growth.
We also extend our warm congratulations to the newly appointed team of Nigerian Consumer Credit Corporation, CREDITCORP, led by the esteemed CEO, Uzoma Nwagba a highly experienced and qualified professional. We have every confidence in the team’s ability to drive this project forward.
Recommendations for A Successful Nigerian Consumer Credit Scheme
As a professional body dedicated to developing risk management expertise, we are committed to supporting this initiative. To ensure the scheme’s success and full potential, we offer the following recommendations:
– Establish a robust credit scoring system to ensure responsible lending practices
– Implement a comprehensive risk management framework to mitigate potential losses
– Foster collaboration with financial institutions to promote access to credit for underserved populations
– In Nigeria, reliable and timely DATA may likely be a challenge in some sectors. Therefore please work on this challenge and ensure that whatever DATA you are using is reliable.
AERMP Risk Assessment
Furthermore, we highlight the importance of addressing the following key risks to guarantee the consumer credit scheme’s success:
– Credit risk: the risk of borrowers defaulting on loans
– Operational risk: the risk of internal processes and systems failing
– Regulatory and compliance risk: the risk of non-compliance with existing and future regulations
– Strategic Risk: Ensuring that the risks involved in strategies deployed in this noble initiative in Nigeria are taken into consideration and well managed.
In addition to these and other related risks, the prevailing CREDIT CULTURE in Nigeria must be taken into consideration especially since the scheme was established by the Federal Government. Lessons can be learnt from the challenges faced in the execution of Anchor Borrower and other government funded schemes so that this noble project will not be frustrated.
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By acknowledging and mitigating these risks, the Consumer Credit Scheme can thrive and achieve its objectives.
At AERMP, we are dedicated to promoting risk awareness and compliance, and we look forward to collaborating with the scheme’s stakeholders to ensure its success.”
SIGNED
Olayinka Odutola FCIB, FERP, Director General / CEO AERMP for President & Chairman of Council, AERMP, Mrs S. TAIWO IGE, FCIB, FERP
