For years, our national discourse has rightly championed the cause of “financial inclusion” – striving to bring more Nigerians into the formal financial system, empowering them with access to banking, savings, and credit. This noble objective is foundational for economic growth and poverty reduction. However, while bringing more Nigerians into the formal financial system remains paramount, there’s a critical, often understated, counterpart to this conversation that demands our urgent attention: “credit responsibility”.
The next big frontier in our nation’s economic development isn’t just about expanding access to credit; it’s about fundamentally reshaping our credit culture. The uncomfortable truth is, far too many individuals and entities within our economy operate with a pervasive, damaging mindset. It’s a belief system that quietly suggests, “I can borrow money, deliberately refuse to pay it back, move on with my life, renew my international passport, drive freely across our cities, and still benefit generously from government intervention funds.” This casual disregard for repayment isn’t just a minor oversight; it’s a silent assassin of our nascent credit system.
“This pivotal shift requires more than just public awareness campaigns; it demands decisive regulatory intervention. The Central Bank of Nigeria (CBN), as the apex financial regulator, is uniquely positioned to lead this charge.”
This toxic mindset quietly, yet effectively, kills the credit system for everyone. It particularly hurts the honest borrowers – the diligent entrepreneurs, the struggling small businesses (MSMEs), and the responsible individuals who desperately need fair-priced, accessible loans to grow their ventures, fund their education, or meet unforeseen expenses. When lenders face high default rates, they have no choice but to compensate by charging higher interest rates, imposing stricter collateral requirements, and becoming more risk-averse. This makes credit more expensive and harder to obtain for the very people who would use it responsibly and fuel economic activity.
Let’s be clear: cheap, accessible credit simply cannot coexist with a culture where chronic defaulters face no real consequences. It’s a fundamental economic principle that risk must be priced. If the risk of non-repayment is high and unchecked, then the cost of credit will inevitably rise for everyone else. Furthermore, there’s a profound ethical and economic inconsistency when individuals or businesses deliberately undermine the financial system and then turn around to enjoy taxpayer-backed subsidies or government intervention programmes. These programmes, designed to uplift vulnerable sectors and stimulate growth, are funded by the collective contributions of honest citizens and businesses. Allowing defaulters to benefit from them while actively sabotaging the credit ecosystem is an irony we can no longer afford to tolerate.
Imagine a scenario where a persistent credit defaulter finds themselves unable to renew their international passport, or perhaps their driver’s licence. Picture them being explicitly excluded from government-backed loan schemes, grants, or other intervention programmes. These aren’t punitive measures designed to stifle enterprise, but rather corrective mechanisms aimed at instilling financial discipline and protecting the integrity of our credit markets. In many developed economies, a good credit score is a golden ticket, impacting everything from housing rentals and insurance premiums to employment opportunities. It’s time Nigeria began to build similar linkages, where financial responsibility carries tangible weight beyond just direct debt collection.
Nigeria’s economic future hinges significantly on the robustness of its credit infrastructure. Our MSMEs, often lauded as the backbone of our economy, are perpetually starved of capital. A healthy, responsive credit system, built on trust and accountability, is crucial for their growth, innovation, and ultimately, job creation. We cannot aspire to a sophisticated financial ecosystem if the fundamental principles of trust and accountability are continually undermined by a segment of the population that believes it can operate with impunity.
This pivotal shift requires more than just public awareness campaigns; it demands decisive regulatory intervention. The Central Bank of Nigeria (CBN), as the apex financial regulator, is uniquely positioned to lead this charge. The CBN should work in conjunction with credit bureaus, commercial banks, and relevant government agencies (like the Nigeria Immigration Service and Federal Road Safety Corps) to develop a robust framework that links credit behaviour to critical public services and government benefits. This would involve enforcing stricter reporting mechanisms, ensuring comprehensive data sharing among financial institutions, and fostering an integrated national credit data system where an individual’s credit history has tangible implications across various aspects of their public life.
This isn’t about creating an oppressive system; it’s about building a responsible one. It’s about ensuring that actions have consequences, thereby safeguarding the interests of the vast majority who are diligent and responsible. The time has come to elevate credit responsibility to the same national priority level as financial inclusion.
Dr Adeniyi Bamgboye, DBA, FCTI, FCA, FCCA, a dual-qualified chartered accountant, tax expert, and policy analyst, is the managing partner of Empyrean Professional Services, an audit, business, and financial advisory firm dedicated to enhancing its clients’ business value. 08060603156. Adeniyi.bamgboye@empyrean.ng
