Nigeria Approves Implementation of Consumer-Credit Economy

By Eddyson Lugangwa Posted 26 March 2006 @ 09:11 pm EET     Print     Reprint     E-Mail     Comments

Nairobi (IBTimes.com) - The Federal Executive Council (FEC) approved the implementation of the recommendation of a committee earlier set up for transiting to a consumer-credit economy.

The President subsequently appointed the Secretary to the Government of the Federation, Chief Ufot Ekaette, to head the implementation committee, which would work out a "work-plan, timeframe, modalities and the establishment of a regulatory agency to drive the consumer credit scheme as well as other regulatory agencies to drive the outsourcing of services in the country.

Other members include the Ministers of Finance, Science and Technology, FCT and representatives of the National Universities Commission (NUC), Central Bank of Nigeria and the Federal Inland Revenue Services (FIRS).

Part of the recommendation by the committee include upgrading the present national identity card as a general, multi-purpose card that would have the holder's names, age, sex, gender, biometric fingerprint and photo engraving. It would also be upgraded to accommodate information such as the national identity card, bankcard verification, driver's license, voter's card, tax card, students' card, pension number, national health insurance number and any e-government application of the future.

Information and National Orientation Minister, Mr Frank Nweke Jr., explained that by using consumer credit system Nigerians would not have to carry cash for their daily transactions.

"You do not have to save for five years to buy a car or a television. If you have a steady job, a steady income and you are identifiable, banks will easily grant you loans. With the cash economy we run now, we are under pressure to acquire the cash and it has its own drawbacks", he said.

FEC also approved the scaling down of Nigeria's membership of international multilateral organisations from 271 to 228 based on a report of a committee.

Mr Nweke Jr. said the nation is disengaging from those organisations because debts arising from dues and levies are overburdening the government to the tune of N24.436 billion.