Government targets loan defaulters with NIN, credit score linkage; but what about the big thieves?

On June 17, 2025, it was reported that the Nigerian Federal Government plans to link credit scores to the National Identification Number (NIN), with loan defaulters facing consequences such as difficulties in renewing passports, driver’s licences, or securing housing.

This policy, led by CREDICORP, marks a significant shift in Nigeria’s financial landscape. It aims to address systemic issues with loan repayment and modernise credit infrastructure. The announcement included details of a Nigerian National Identity Card, emphasising the NIN’s central role.

Its core objective is to establish a centralised credit bureau, building on a 2015 study that revealed ₦546.02 billion in non-performing loans out of a ₦13 trillion portfolio, indicating a pressing need for reform.

According to Uzoma Nwagba, CREDICORP’s Managing Director, the initiative will link credit scores to NINs, ensuring every Nigerian has an accurate credit score based on loan repayment behaviour across commercial banks, fintech, and microfinance institutions.

This system will use a structural algorithm and gather comprehensive financial and non-financial data to score individuals, leaving “no hiding place for anyone.”

“This is a fundamental shift in how credit works in Nigeria. Your NIN will now serve as the anchor for your credit profile. Whether you borrowed from a commercial bank, a microfinance institution, or a digital lender, that data will now be traceable and carry real consequences”, says Uzoma.

Consequences for defaulters are described as “subtle and structured.” This approach is inspired by international credit systems and aims to enforce accountability.

The policy also aligns with CREDICORP’s mission to combat corruption, drive industry growth by facilitating consumer credit for locally manufactured products under the Nigeria First policy, and address Nigeria’s need for ₦183 trillion in credit for effective development.

“No government in the world can provide that kind of money. Financial institutions must step up. With the right infrastructure and transparency, lenders will be more confident, interest rates will drop, and Nigerians will finally have access to affordable credit”, Nwagba urged.

A forthcoming consumer credit program targeting 400,000 Nigerian youths (18-35 years) via the YouthCred scheme, already providing loans to NYSC members, aims to enhance living standards and teach responsible credit management.

This program, part of the policy’s rollout, highlights the government’s focus on youth empowerment, as reported by Vanguard.

Read also: Data privacy: How loan apps create ghost accounts for rejected applicants?

What about the big fish?

A significant concern is the policy’s focus on individual defaulters while seemingly ignoring larger financial misconduct. perpetrators, often dubbed the “big fish”.

These are corrupt officials or institutions with unpaid loans or misappropriated funds, a point raised in public discourse and hinted at in news critiques about equitable enforcement.

This disparity fuels widespread scepticism, as the policy’s emphasis on penalising ordinary citizens for unpaid loans contrasts sharply with the apparent lack of accountability for high-profile figures or entities implicated in massive financial irregularities, such as the billions allegedly siphoned through government contracts or the non-remittance of funds by state-owned enterprises.

Public frustration is amplified by historical examples where anti-corruption efforts have disproportionately targeted low-level offenders, while systemic issues remain unresolved.

Critics argue that without a comprehensive approach to tackle these “big fish,” the NIN-linked credit system risks being perceived as a tool to oppress the vulnerable rather than a genuine reform, undermining its legitimacy.

News outlets have subtly echoed this sentiment, questioning whether the policy’s enforcement mechanisms will extend beyond individual borrowers to address the entrenched financial elites, a gap that could erode public trust and spark further resistance if left unaddressed.

But why is the policy important?

The policy’s implementation aligns with Nigeria’s growing digital economy, where mobile penetration reached 122.6 million subscribers by 2023, according to the Nigerian Communications Commission.

Linking credit scores to NIN leverages this infrastructure, enabling real-time data collection through platforms like the Bank Verification Number (BVN) and digital lending apps, which processed over ₦1.5 trillion in loans in 2024, per fintech data.

This technological integration aims to enhance credit accessibility for the 28.8 million adults without traditional credit histories, as noted in a 2025 RiskSeal report, potentially boosting financial inclusion.

Economic realities, however, complicate this vision. Inflation was reported to be at 22.97% in May 2025, and unemployment hovering around 5.3%, many Nigerians struggle to service loans, a challenge echoed in critiques suggesting the policy may overburden vulnerable populations.

The 2016 ResearchGate study on loan defaults highlights economic instability as a key factor. It urges the government to pair enforcement with economic support measures like job creation or loan restructuring.

This balance will determine whether the NIN linkage fosters growth or deepens financial strain.

How are the citizens reacting?

Public reactions, as seen on X, are mixed, reflecting widespread interest. Replies reveal a polarised response.

Supporters, like @MayJaYBaE, view the policy as a step towards financial discipline, asking, “Why are people saying they’re coming after our lives? Isn’t that how it works in a civilised country?”

Conversely, critics such as @thatMrT argue, “Why punish Nigerians for taking loans that economically became unserviceable? Why can’t you write off loans for the poor people?” This highlights economic instability as a root cause.

@AdaIgbo00 criticised the policy’s focus, stating, “They want to punish loan defaulters but turn a blind eye to the big thieves. Typical Nigerian government move, blame the small guy, protect the big sharks.”

@Richie_Ehdu humorously noted, “Nigeria is advancing technologically until it’s time to upload election results on IREV.” This points to selective progress.

@aminsaad expressed concern, saying, “Why is every new thing in Nigeria is to punish the people rather than improving standard of living?” These reactions indicate significant controversy, with fears that the policy may disproportionately burden vulnerable populations.