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Consumer Credit Scheme: How Desirable?

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On Thursday  May 2, 2024 , an analyst on national radio programme lambasted some Nigerians who did not buy the idea of the consumer credit scheme that was recently approved by the Federal Executive Council and launched by President Bola Tinubu.
A statement from the presidential media office, had indicated that the scheme which will be run by the Nigerian Consumer Credit Corporation (CREDICORP), will offer credit facilities to working citizens in the country and will be implemented in stages, starting with public or civil servants and later extend to the general public.
The analyst did not see the reason why some people should kick against the initiative which in his view offers several advantages of Increased Purchasing Power including:  providing individuals with the ability to purchase goods and services even if they do not have the full amount required at the point of sale;  offering a convenient way to manage cash flow, allowing consumers to spread the cost of a purchase over a period that suits their financial situation; helping people acquire essential items—like refrigerator or car—that they might not be able to afford upfront, thereby improving their quality of life; providing a critical resource in emergency situations, allowing consumers to afford necessary services or repairs that they might not have the immediate funds to cover, among others.
Definitely, advantages of consumer credit schemes abound.
The scheme can greatly enhance purchasing power and provide financial flexibility but we must also admit that it is a double-edged sword and can lead to debt accumulation and financial hardship if not used wisely.
Consumer credit schemes can carry high interest rates and fees, particularly if the balance is not paid off during any interest-free period offered. This can significantly increase the overall cost of the purchased goods or services.
Easy access to credit can lead to overspending and the accumulation of debt, particularly if consumers use credit impulsively or fail to manage their repayments effectively. Missing payments or defaulting on a credit agreement can negatively impact a consumer’s credit score. Poor credit scores can restrict access to future credit and result in higher interest rates on loans.
Again, relying too heavily on credit for regular purchases can lead to financial dependency, reducing a consumer’s ability to save and prepare for future financial needs. It is also a known fact that some credit agreements come with complex terms that can be difficult to understand. This can lead to unexpected charges or conditions that a consumer may not be fully aware of, when entering into the credit agreement.
While this write-up is not aimed at an in-depth focus on the merits and demerits of consumer credit schemes, it is aimed at looking at the suitability of the scheme in present day Nigeria. The nation’s economy is in comatose. Poor electricity supply, high electricity tariff, high cost of petrol and diesel and other economic variables are forcing a lot of companies to pack up.
For some unclear reasons, there has been fuel scarcity in the nation’s capital, Abuja and other cities across the country for over two weeks. While NNPC claims it is due to logistic and vessel problems, the Independent Petroleum Marketers Association of Nigeria (IPMAN), through its Public Relation Officer, Chinedu Ukadike stated categorically that the current fuel scarcity is because “most of the refineries in Europe are undergoing turnaround maintenance.”
Nigeria catches fever whenever Europe and other continents that refine our crude oil cough because we have failed to make the nation’s refineries work. Deadline upon deadline had been given by the federal government on when Port Harcourt and other refineries in the country would commence operation, all to no avail.
One will want to believe that a government that loves its citizens would address the pressing economic challenges before embarking on a consumer credit scheme. Let power supply be made stable and affordable, the refineries be brought back to life to guarantee steady supply of petrol at an affordable price and the value of the nation’s currency be improved so that the salaries of civil servants and other workers will be more meaningful. It is not a question of a new “living wage” or “minimum wage”. It is rather a question of healing the economy and strengthening the Naira so that the workers’ salaries will be more valuable.
What is the essence of encouraging workers to partake in a consumer credit scheme when they are likely to miss payments or default on credit agreement due to numerous financial pressures on them? Is that not capable of increasing their financial stress and anxiety and thereby impact other areas of their lives?
In the past, many civil servants in the country augmented their salaries through agriculture. I remember my uncle, a civil servant working in Enugu, coming to the village almost every weekend to carry out some work on his farms in Uzo-Uwani Local Government Area of the State and when going back to Enugu on Sunday, he goes with jerry cans of palm oil and different kinds of food items from his farms. Today, due to the lingering insecurity in communities across the country, many civil servants hardly visit their villages not to talk of going to farms. So they depend solely on their salaries.
Of course, the launched consumer credit scheme is optional but necessary steps must be taken to improve the economy, security and the living standard of the citizens so that anyone who opts to obtain a loan through the scheme will not have a nightmare servicing the loan. CREDICORP and other relevant authorities also owe the citizens the duty of explaining the nitty gritty of the scheme to the citizens. Let the consumers know that what they are taking is a loan that must be paid within a specified duration with an interest – not a grant.
It is important that consumers, that is, federal and state civil servants and others included in the first phase of the scheme , are advised to carefully consider their financial situation and the terms of credit agreement before committing to the consumer credit scheme so as to minimise risks and enable consumers to maximise the benefits of the scheme.
It is hoped that the experience of previous federal government loans like the CBN’s Anchor Borrowers Programme, the Targeted Credit Facility (TCF), introduced by the CBN to support households and SMEs affected by the Covid-19 pandemic does not repeat itself. We saw some beneficiaries of the TCF protesting when commercial banks began the loan recovery, claiming that what they received was Covid-19 grants not loans and it should not be repaid. The would-be beneficiaries of the Consumer Credit Scheme must be properly educated. Adequate mechanisms must be put in place to ensure recovery of the loan from defaulters.
CREDICORP must also ensure that only the eligible citizens who have applied for the loan got it. It should not be a way of empowering some political party members or people that are highly connected.  According to the special adviser to the president on media and publicity, Ajure Ngalale, “The scheme will be rolled out in phases, starting with members of the civil service and cascading to members of the public.” The president believes every hardworking Nigerian should have access to social mobility, with consumer credit playing a pivotal role in achieving this vision.” Nigerians await the materialisation of this.

Calista Ezeaku

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Hurray! Another Feather For Fubara

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Before the Saturday, October 5, Local Government Council Election to midwife the rebirth of elected Local Government administrations in Rivers State, it was hard on me to believe that general elections can hold in Nigeria without the Nigerian Police and other statutory security organisations’ participation to provide security. So when the Abuja High Court restrained the Nigerian Police from giving security for a seamless, hitch-free election processes, I was startled on the security of election materials, adhoc staff of the Rivers State Independent Electoral Commission (RSIEC) and the voters, even though legal luminaries posit that it is not within the ambit of Federal courts to legislate on Local Government matters. Many people thought that the Inspector-General of Police’s decision to promptly obey judicial orders would either truncate the process or trigger voter apathy.
However, the outcome: violence-free, massive participation of voters even the participation of those who confessed that they had not exercised their franchise in the last 24 years of Nigeria democratic dispensation, does not only prove me wrong but also speak volumes of a people yearning for self determination at the grassroots. It also shows that the time of a marked departure from the ugly, repressive and dictatorial past has inevitably come to an end. It underscores the emergence of  a new political order and structure that are the prerogative of the people and a function of legitimacy from the people, not a structure that is a product of a coercive, repressive , and other measures that negate democratic values and norms. For once, Rivers people have sent a message that they remain a distinct political entity with the right to decide who leads them.
The people of Rivers State, from the Ikwerres, the Kalabaris, Etches, Ndonis, Wakirikes, Andonis, the Ekpeyes, Ogonis, Abuans and several other micro ethnic and language people as a resilient and brave people have gained consciousness to dislodge the human instrument that perpetrates oppression even as Karl Marx said, “It is only when people are conscious of the fact that they are oppressed can they rise to dislodge the instrument that makes the oppression possible”. The October 5, Local Government Election, shows that despite its ethnic  and language diversity Rivers State is homogeneous, united in  corporate interest and goal. Rivers people have  proven that general election without the presence of Nigerian Police is possible. Some voters have also alleged that considering the peaceful election achieved without the presence of Nigerian Police, the crisis-ridden elections in Nigeria may have been the architecture of the Police. Some believe that their presence poses a discomfort to voters and an uneasy calm in voting environment.
Now that it is possible to conduct elections without them the Federal and Sub- national electoral bodies can reduce cost of conducting elections. The huge budget allocated to security for election purposes presupposes waste, so can be channeled to other critical sectors. This laudable achievement-a peaceful election without Nigerian Police would have been elusive without the peaceful, mentally and emotionally matured, God-fearing disposition and Rivers First mantra of the Executive Governor, Siminalayi Fubara. The Governor’s passion for peace and development even amid provocative and inciting statements by detractors and enemies of Rivers State, has endeared him to the people and whittled down the influence and relevance of the opposition in Rivers State. It is not gainsaying the fact that in recent times, the Nigerian Police has flagrantly violated professional, ethical and moral standards.
The high command seems to have sacrificed their statutory obligations to the people on a whim for personal relationships and filthy lucre. They seem to have allowed pecuniary gains to dull and cloud their sense of reasoning and their primary statutory responsibilities of crime detection and prevention, protection of lives and property. The occupation of Local Government Council Secretariats in the 23 Local Government Areas of Rivers State by the Nigeria Police, preventing Caretaker Committees and staff of Local Government councils to access their offices to carry out legitimate duties when States with caretaker administrations functioned without Police interference, is a dent on the credibility and integrity of the Nigerian Police. At the wake of the political upheaval in Rivers State, the Executive Governor of the State, Sir Siminalayi Fubara, received his dose of the rascality of some men of the Nigerian Police. Canisters of water were shot at the Governor as gleaned from viral videos and other media outfits.
How could the Nigerian Police have descended so low to derecognise the Executive Governor who is the Chief Security Officer of Rivers State? What came on them to compromise their duties to the people and Government of Rivers State? How on earth could they have deemed serving the interest of one man in Abuja is paramount and transcends that of the generality of Rivers people? The Nigerian Police by their inactions and untoward activities in Rivers State, tried to convey a false assumption that there are two Governors in Rivers State. This animosity on the state lends support for the quest for and against State Police. A State Police formation will be necessary, Purpose-driven and effective under a cool-headed, humane, objective and listening governor like Governor Fubara. However, a State Police in control of the opposition in Rivers will be the German Nazis – an instrument of torture, oppression, and autocratic governance.
The Nigerian Police should be and be seen to be professional, neutral, non- partisan, conscientious and sagacious in their conduct, if they must earn the respect of the people. The Nigerian Police and the Judiciary should resist the allures of being used as anti-democratic institutions to truncate Nigeria’s hard-earned democracy. No doubt every profession has its hazards. If the challenges of a profession do not allow a person to uphold integrity and ethical standards, it is better to quit the job. It is honourable to die for what you know is right than living for the shadow, and the mundane. When money and wealth are lost, nothing is lost but when integrity is lost everything is lost.

Igbiki Benibo

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As Nigerians Await Tinubu’s Cabinet Reshuffle…

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That President Ahmed Bola Tinubu plans to reshuffle his cabinet is no more any secrets. Before now many notable Nigerians, civil society groups, socio-cultural bodies and even Mr President’s party, the All Progressives Congress (APC), have called on the president to weed-out non-performing officials from his government in the face of worsening hardships engendered by poorly conceived and implemented federal government policies. Mr President had himself hinted at heeding the calls when he warned that top government officials whose periodic performance reports turn out poor would be dropped from his government. “If you are performing, nothing to fear. If you miss the objective, we’ll review it. If no performance, you leave us. No one is an island and the buck stops on my desk,” President Tinubu had warned cabinet members and other top government officials, during a three-day retreat last November. Since then, a Central Delivery Coordination Unit headed by Presidential Special Adviser on Policy Coordination, Hadiza Bala-Usman, has been established to receive ministerial reports and measure performances. But while the criteria for performance verification and rating remain unknown, no publication has been made by the unit since its inception.
Nearly a year after inauguration, Tinubu’s cabinet remains the same in the face of worsening state of affairs, except for the suspension early this year, of Humanitarian Affairs and Poverty Alleviation Minister, Dr Betta Edu, following a financial scandal that so embarrassed the administration. Many had long expected far-reaching measures from President Tinubu to reverse the worsening economic hardships in the country. However, after rising unrests culminated into major nation-wide protests in August, and another billed for October, grapevine sources inside the presidency revealed frantic considerations of the calls for cabinet change. But would Mr President play to the gallery by appearing to yield to popular demands, or has he finally reckoned that rising poverty is pushing the nation towards breaking points, hence the need to re-tool? As lofty as the ‘Renewed Hope Agenda’ sounded, to many ordinary Nigerians, the reality of the mantra is nothing but abysmal failures.
But having dragged for months, it appears the supposed tonic of cabinet reshuffle poses a hard nut to crack for Mr President, which had set herculean tasks for presidential aides to continuously deny the hushed effort, until presidential spokesperson, Mr Bayo Onanuga, finally acquiesced to the veracity of the rumours. Ever since, the whirling vortex of rumours shifted from it being a possibility, to how soon it comes, much as speculations now brew on who makes or has made the new list, and who gets or got dropped from the current. Intense lobbies said to have been mounted at the presidency may have caused Mr President so much distractions to force him scamper abroad with the unfinished list, on a pretext of going on vacations. The inability of Mr President to make swift changes that quickly respond to urgent challenges reflects the complexity of our system and how sourcing for trusted technocrats, contending with vested interests and the need for political balance, may hamstring a government’s ability to maneuver through troubled times.
It is note-worthy however, that lasting solutions to many of Nigeria’s problems lie much not in cabinet make-ups than in corruption and the lack of sincere, political will to getting problems solved, which situates Mr President at the centre of blames for much of our nation’s current woes. For instance, if Mr President is determined at tackling Nigeria’s major economic failures of recent past, the first consideration should be to critically review the declining performance of the ministry of petroleum resources, which serially became lacklustre since the portfolio got vested on Mr President’s office since from the time of President Mohammadu Buhari in 2007. With the sole heartbeat of Nigeria’s mono-economy entrapped at the very busy office of Mr President, who has no time to over-see the day-to-day affairs of the petroleum sector, yet is so immuned to accountability summons, no one should wonder why the petroleum industry, as well as the Nigerian economy, has degenerated ever since. Coupled with general insecurity, the decline in official petroleum production data since then led to dwindling foriegn exchange, ballooning official debts and the current general inflation.
As for the performance of the ministry of defence, whose past lapses led to the destabilisation of Nigeria’s agricultural sector by bandits, the current momentum at last, against terrorism and banditry, looks encouraging. But while it is worrisome that sources reveal that some saboteurs who fraternise with terrorists also seat in our nation’s high offices, the direct accusation by a sitting governor against no smaller personality than the current minister of state for defence, is an alarm that should not be neglected. Even as the accused denies and reverses the accusation, government should beware that the presence of such controversial figures is a burden to the image of government. Mr President also needs to take serious reviews at the performance short-comings of our nation’s ministry of interior which over-sees law enforcement and compliance establishments. Bedevilled by corruption, inadequate financing and institutional weaknesses, some of these institutions fall short of expectations and reportedly bow most times, to the whims of corruption. The current Bobrisky saga for instance, has put the Nigerian Correctional Services and the Economic and Financial Crimes Commission in gloom spotlight, and reflects how badly our institutions may have been compromised.
It is advisable however, that the move to scrap the Humanitarian Affairs Ministry may not be good for ordinary Nigerians who pass through the harshest consequences of the policies of this administration. Even if the ministry faces distrust from many due to years of non-transparent distribution of reliefs worth billions, and from which so many vulnerable Nigerians did not get a dime, Nigerians still desperately in need of bail-outs would prefer a disciplined and better managed public welfare ministry. The current situation in the country requires the collective concentration of all to ensure full recovery. The president should therefore beware of cabinet members who would let themselves be drawn to divisive political grand-standings that not only drain energies needed to restore the economy, but distract the focus of his government at tackling pressing challenges.
So, as Nigeria and Nigerians await President Tinubu reshuffle his cards for another chance at good governance, history beckons on him to set name and good marks, in gold.

Joseph Nwankwor

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Opinion

Adult Delinquency In Public Space

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Over the years,  the remarks of Konrad Adenuar, (January 6, 1876 – April 1967),  a former Chancellor of Western Germany, that   ”in view of the fact that God limited the intelligence of man, it seems unfair that He (God) did not also limit his stupidity”,  has continued to agitate the minds of critics including public affairs analysts. This comment, which put succinctly, highlights God’s unfairness for  supposedly setting definite limit on man’s wisdom (intelligence) but  failed  to set the same limit on man’s stupidity, has  attracted wide spread condemnations from different sects; christians and non christians alike. Similarly, some critics, largely writers, hold the sentiment that society should not concentrate on juvenile delinquency alone but should also be concerned about what some identified as “adult delinquencies” since societal ills,grievious misdemeanors are traceable to adults, some of whom are leaders of thoughts occuping high offices.
Nigeria is replete with gutter Languages in public spaces deserving of concern and attention. One classic example is the recent outburst of Senator Adams Oshomhole, a former Governor of Edo State. It would be recalled that Senator Adams Oshomhole referred to the wife of the Governor of Edo State, Mrs Betsy  Obaseki, as a barren woman.Truly, it could be said that Mrs Betsy Obaseki  stoc the crisis when she referred to the governorship aspirant of All Progressive Congress (APC) Monday Okpebholo, as  a man without a wife. Political campaigns should be undertaken or conducted to discuss  issues and not insults to  enable the electorate choose a credible leader who can provide solutions to societal challenges. No doubt, it is regrettable that a former labour leader, governor and now a serving Senator, Adams Aliya Oshomhole, considered as  highly experienced to exhibit civility, maturity and superior acumen in a challenging situation such as this, particularly when viewed against the backdrop that the comrade- senator was not  speaking at a political rally ground.
Recently, the West, particularly Europe, is returning artefacts stolen from ancient Benin Kingdom more than a century and thirty years ago which politicians can discuss with respect to diversifying the economy as well as provide solutions to numerous difficulties facing Edo State and Nigeria at large.Worse still, can any parent boast of having or rearing children by his or her self as  to scorn an expectant family?. In the same way, the German statesman Konrad Adenuar cited above once  noted: “History is the sum total of things that could have been avoided”. For instance, the former governor of Kaduna State, Nasiru El-Rufai, once told foreign powers planning to interfere into the 2019 general election to  jettison the plan otherwise they would  leave in body bags.’Body Bag!’.
The expression “leave in body bags”,  is not befitting of a serving governor in all ramifications. As if that was not enough, the current Senate President and former Governor of Akwa Ibom State Senator Godswill Akpabio, referred to the contribution of a fellow law maker Natasha Akpoti Uduaghau as a “Night Club Comment”.This was another sad commentary and bad public communication made by a public office holder of equal ranking with a fellow colleague, because all senators are equal and therefore, the remarks by Senator Akpabio was regrettable even though he had apologized for his unfortunate outburst. Denigration of any sort should not be an option in pilloring the women folk in public places.
In fact, elder statesman, Pa. Edwin Clark, recently  called on the Inspector of Police and President Tinubu to arrest the minister of Federal Capital Territory (FCT), Chief Nyesom Wike, for saying he (Wike ) will put fire in the states of PDP governors and officials who want to interfer with his political structures in Rivers State.To put fire is ambiquous and has frightening implications. The Bible is apt and ever correct when in proverbs 15:1 noted that “Soft answer turns away wrath but grievous words stir up anger”. The remarks cited above traceable to public officials and leaders  in public spaces  show pride, selfishness, arrogance and are capable of igniting crisis, if not nibbed  in the bud. In addition to the provision of infrastructure, elected leaders must learn the acts of engaging in public communication, speaking life and not hate speach to build society for the better.Jesus Christ speaks in John 6:63 thus: “The words I speak they are Life and Spirit”.
It is instructive to observe that before David killed Goliath in it is recorded in 1st Samuel Chapter 17:24 – 45, that Goliath was very insultive, boastful, denigrating the army of Israel at the battle field before a non-soldier in the person of David over powered him- Goliath. Pride, they say, goes before the fall of man. This is why leaders in positions of trust should retrace their steps and be mindful of the words they speak and transmit in communicating with the electorate,fellow polititicians or their party members to engender peace in the polity and promote peaceful co-existence in Rivers State and Nigeria at large. The time to act is now.

Baridorn Sika
Sika, is a public affairs analyst.

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