A new credit system in Nigeria will link loans to national identity numbers
The goal is to clean up Nigeria’s fragmented credit landscape and encourage responsible borrowing.
Nigeria has never really had a strong culture of formal credit scoring. For years, borrowing money, especially from microfinance banks or loan apps, has been based more on trust, soft data, and sometimes even scare tactics like public shaming or doctored images than proper credit records.
Most lenders just collected information, such as your BVN, and hoped you’d pay back. If you didn’t, the worst that might happen was a few embarrassing texts or your face showing up in a WhatsApp group.
But the Nigerian government has decided it's time to tighten things up a little.
The government has unveiled a new plan to link every loan you take to your National Identification Number (NIN), creating a centralised credit tracking system through the Nigerian Consumer Credit Corporation (CREDICORP). This means your credit history, whether good or bad, will follow you across banks, fintechs, and microfinance lenders, with all institutions now required to report how you handle your loans. The goal is to clean up Nigeria’s fragmented credit landscape and encourage responsible borrowing.
David Adubiina
The government picked NIN instead of BVN because BVN only works for people with bank accounts, while NIN covers everyone. This move continues the government’s push to get all Nigerians registered for NIN, a push that really took off in 2020 when telecom companies were told to link phone numbers to NIN. That decision led to nearly 30% of phone users being disconnected. Now, this new loan system feels like another step in the same direction.
With the new setup, people who repay their loans on time will have better credit scores and may get access to bigger or cheaper loans. But those who don’t pay may face higher interest rates or be stopped from renewing their passport, getting a driver’s license, or even renting a house.
That said, this system comes with benefits for everyone: borrowers can build legitimate credit histories and access larger loans, while lenders can better assess risk and reduce fraud. But it’s not without its concerns; data privacy, error disputes, and harsh penalties for late payments are all questions that remain.
In the end, this isn't just about credit. It’s about identity, accountability, and a digital infrastructure that’s becoming harder to live without.
