The Federal Government of Nigeria has indicated its readiness to pursue the growth and development of the Nigerian economy with significant reduction in risks, through appropriate credit information on individuals and corporate bodies.
Speaking at the official launch of the pioneer credit reporting company in Nigeria, XDS Credit Bureau Limited, in Lagos, Tuesday, the Vice President of Nigeria, Dr. Goodluck Jonathan, represented by Dr. Shamsudeen Usman, Minister of National Planning, disclosed that the decision to fully address the issue of risks in the economy was borne out of the need to cushion the effect of the global financial crisis with proper micro and macro economic regulations.
He said, â€œThe recent global financial crisis has furthermore occasioned a number of issues. It has clearly confirmed the need for an appropriate policy mix, aimed at enhancing the systemâ€™s ability as well as im proving market efficiency.
â€œSuch a mix of policies must also operate in a consistent manner, in line with the overall objectives of monetary and fiscal policies.
â€œMost importantly, however, the crisis has made clear the need for a more holistic approach to effective prudential regulations, at the institutional, macroeconomic and international levels, in order to address fully the wider, systemic risks.
â€œThis objective will require measures aimed at strengthening capital and liquidity requirements, avoiding the build-up of systemic risks across institutions, national economies and even globally.
â€œIt has also shown the need to strengthen market discipline, addressing key information gaps, such as credit information on individuals, organisations and sectors, and encouraging better corporate governance and risk management systems.â€
He noted that the banking consolidation has helped unleashed the enormous potentials in the industry, especially bringing about the introduction of new products, noting that the growth has also brought about new challenges in the sector and in the financial services sector in general.
He disclosed that the credit bureau industry will help bring sanity to the nationsâ€™ financial sector, reducing risks and needless exposures that may cripple the industry, as it will help banks assess the credit worthiness of individuals, bringing into focus the credit history of credit seekers.
He further stated that the credit bureaus will help promote effective private sector management and help banks and other financial institutions assess risks in various sectors, due to information gotten from credit reports of corporate bodies.