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Lack of information about potential borrowers has been identified as an important impediment to bank lending. In highly developed financial systems a comprehensive system of credit information enables banks to rapidly assess and make loans to small borrowers based on their good credit record. In countries like Nigeria this is not possible. The possession of a good private sector credit bureau is one index used by Doing Business to assess the investment climate in the financial sector.
This subcomponent is designed to assist the Central Bank of Nigeria which is designated by law to register and regulate private sector credit bureaus to do so. Sterling International of the United States has provided various teams of advisers which have helped in developing, implementing, and training for the regulatory system. A set of regulations have been issued, three credit bureaus are in the process of licensing, of which two are fully licensed and operational. A draft manual for the regulatory process is under review by the Central Bank. One set of training has been provided, and further training is anticipated. An expert has made recommendations on the modalities for establishment of a system of unique identifiers which is under review by the Central Bank. A program of public awareness is under development.
For information about this component contact Mr. Chukwudi Odili, Investment Climate Specialist at codili@msme-nigeria.org
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