News Investigators/ Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, has commended the Federal Government for unveiling the USSD consumer credit service that enables Nigerians to access loans.
Yusuf, in an interview with the News Agency of Niggeria (NAN) in Lagos on Sunday, said the initiative would address temporary financial challenges.
Mr Yusuf said the initiative was good for households and would help close the credit gap in the economy.
“This is good for the challenges of credit gap in the economy, because there is a deficit of credit gap at the lower rung of the ladder in the society.
“Whether with household or micro enterprises, the financing gap in the country is yet huge,” he said.
He said the gap was why loan sharks were exploiting people, because demand for credit was higher than supply.
He added that the consumer credit scheme would bridge the demand-supply gap and help moderate the interest rates being charged.
Mr Boniface Okezie, President of the Progressive Shareholders Association of Nigeria, also lauded the government for introducing the novel policy.
“Disbursing the funds will cushion the financial difficulties contending many Nigerians, particularly in this period of austerity,” Okezie said.
He, however, said repayment was where the challenge lay, because it was public money and the government needed to be accountable with the fund.
He said the scheme should ideally be designed in a way that it would not be prone to abuse, and people whose credit records had been poor should be stopped in order for the scheme to be sustained and outlive the current government.
Also, a civil servant, Mr Samson Ozeluwa, acknowledged the government for initiating the programme.
“This credit service is laudable, especially in this era of soaring prices caused by the economic hardship.
“This will enable households to meet their financial obligation and thereby stimulate the productive sector of the general economy,” Ozeluwa said.
He urged sub-national governments to replicate such policies to gradually reduce economic pressures in the hinterland.
Mrs Ruth Effiong, a business owner, also welcomed the introduction of the consumer credit scheme whose phones cannot access internet facilities.
“The initiative is commendable, particularly for the lower cadre of the society. The government should ensure that the programme is sustained until the economic hardship receeds,” Effiong said.
She urged the government to invest more in the agricultural sector and its entire value chain, in order for food and poultry products to be more affordable.
NAN reports that the Federal Government has unveiled a USSD-based consumer credit service that will enable Nigerians to access loans using basic mobile phones without internet connectivity or smartphones.
The service, SPARK, was introduced by the Nigerian Consumer Credit Corporation (CREDICORP) to expand access to affordable consumer loans, particularly for first-time borrowers with limited or no formal credit history.
The platform is designed to help Nigerians finance essential goods, household equipment, and productive assets; improve their quality of life; and repay over an agreed period.
NAN