By Emmanuel Elebeke
The Credit Bureau Association of Nigeria, CBAN, has advised telecom companies, utility providers and other non-financial institutions providing services on credit, to take advantage of the Credit Reporting Act, CRA, by using credit bureaux.
CBAN says this would help their businesses and push Nigeria to the top in the world of business. Chairman of CBAN, Mr. Tunde Popoola, said CRA provides for credit information sharing between credit bureaux and lenders such as banks and other financial institutions.
He regretted while the financial sector has complied with the provision of the Act to determine the credit worthiness of their customers, most operators in the non-financial sector are yet to fully utilise the services of credit bureaux.
Popoola revealed that CBAN would, in the coming months, begin a series of sensitisation programmes to enlighten operators in the non-financial sector on the CRA.
According to him, access to credit is critical to economic growth and could be considered a driver of private sector development. He added that credit applications get rejected due to insufficient credit history and information for the lender to make a reasonable judgement as to whether to extend credit or not.
Popoola said: “In Nigeria, more than 90 per cent of private enterprises, Micro, Small and Medium Enterprises(MSMEs) have limited or no access to credit. Loans provided by banks to the private sector are only 14 per cent of the GDP in Nigeria, as opposed to 149 per cent in South Africa. To improve this, there should be adequate credit information sharing by all concerned.”