The House of Representatives has passed for second reading a bill seeking to give statutory backing to the Nigeria Consumer Credit Scheme and establish a Consumer Credit Development Fund to boost financial inclusion and household empowerment.

The Nigeria Consumer Credit Corporation (Establishment) Bill, sponsored by Speaker Abbas Tajudeen and Wale Hammed, aims to institutionalise consumer credit regulation, credit reporting, consumer protection, and funding mechanisms for credit expansion.

Leading the debate, Hammed described consumer credit as “the foundation of modern economic life,” noting that in advanced economies, citizens acquire homes, cars, and education through structured and transparent credit systems.

He lamented that Nigerians largely depend on informal and exploitative lending channels, which limit household consumption and economic growth.

“The Bill proposes a transparent and sustainable legal framework to institutionalise consumer credit through the Nigeria Consumer Credit Corporation (CREDICORP),” he said. “It aligns with President Bola Tinubu’s Renewed Hope Consumer Credit Scheme launched in 2024 to democratise access to credit for working Nigerians.”

According to him, while the current corporation exists as a limited liability company, the new legislation seeks to transform it into a statutory body with defined powers, governance, and regulatory authority.

The bill will also empower CREDICORP to manage the Consumer Credit Development Fund, regulate lenders and credit bureaux, enforce fair practices, ensure data privacy, and resolve disputes effectively.

Hammed added that the measure supports the administration’s goal of transitioning Nigeria from a cash-based economy to a credit-driven one, helping citizens build credit histories, acquire assets responsibly, and contribute to national productivity.