EFInA Warns: ‘NIN-for-Credit’ Policy Could Be a Double-Edged Sword for Nigeria’s Financially Excluded

A bold step is being taken to reshape how credit works in Nigeria, and it all starts with a number.

Earlier this year, on June 17, 2025, the Nigerian Consumer Credit Corporation (CrediCorp) unveiled a policy that links every citizen’s National Identification Number (NIN) to their credit profile.

The idea is simple but powerful: create a centralized system that boosts transparency and allows lenders to make more informed decisions. On paper, it looks like a major win for financial inclusion.

But beneath the surface, there’s a deeper story, one that touches the lives of millions of Nigerians struggling at the margins.

According to a new report by Enhancing Financial Innovation and Access (EFInA), the “NIN-for-Credit” policy could unintentionally lock out the very people it hopes to empower, especially those in rural areas, low-income groups, and the vast informal sector.

The report, titled “NIN and Credit Reporting: Implications for the Poor and Vulnerable Segments in Nigeria,” sheds light on the stark identity gap in the country.

While 76% of wealthier Nigerians have a NIN, only 47% of the poorest adults have been able to obtain one. That’s not just a statistic; it’s a reality that could determine whether someone gets a loan to grow their small business or is left behind, yet again.

Let’s not forget: more than 40 million informal enterprises and 65% of all jobs exist in the informal sector, from traders and artisans to farmers and market women.

Many rely on traditional savings methods like esusu, adashe, cooperatives, and informal lending circles. These networks help keep their businesses afloat, feed their families, and pay school fees.

But under this new system, their financial behaviours may be invisible, simply because they don’t show up in formal databases.

EFInA’s report acknowledges the promise in the policy. If done right, linking NINs to credit could unlock opportunities for millions who’ve never had access to formal financial systems. It could offer them fairer credit scoring, more transparency, and better access to support systems.

But here’s the catch: if the system doesn’t recognize the realities of the informal economy, or support those without NINs, it could widen the financial divide, not bridge it.

The report calls for urgent action to Boost NIN enrollment in poor and underserved communities; avoid penalizing those with no credit history or NIN; Integrate informal credit behaviour into scoring systems, and investing in education and digital literacy so people understand their rights and how to navigate the new system

Because at the heart of it all, financial inclusion isn’t just about numbers or databases, it’s about people. People like Mama Kemi, who runs a thriving akara stand but can’t access a loan because her years of savings through a local cooperative don’t “count.” Or Yusuf the tailor, who keeps meticulous records in his jotter but doesn’t have a NIN.

If Nigeria truly wants to build an inclusive financial future, EFInA’s message is clear: we must leave no one behind. Not the poor. Not the unbanked. Not the unseen.

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