Financial Expert and Chief Executive Officer, CRC Credit Bureau Limited, Dr. Ahmed Popoola, Monday stated that 25% of applicants for Nigerian Education Loan Fund (NELFUND), have at one time or the other borrowed money from loan apps.
He said data submitted to the CRC bureau for verification from NELFUND was subsequently processed and analysed by the credit bureau, which revealed that “at at least 25% of NELFUND applicants have borrowed at least once, in the last two years using digital platforms on their mobile devices.”
“NELFUND submits their data to CRC, our analysis of those data showed that at least 25 % of students have already borrowed at least once in the last two years using digital platforms on their phones,” he said.
Popoola made the disclosure while delivering the first collaborative lecture of the Faculty of Management and Social Sciences (FMSS) and the Centre for Advancement and Industrial Collaboration (CAIC) of the Kwara State University, Malete, held at the institution’s permanent site.
Speaking on the theme :”Finance, Entrepreneurship, and The Infrastructure of Trust, ” the credit bureau CEO decried what he called “huge funding gaps for entrepreneurship businesses in Nigeria” saying “credit penetration (access to credit) for registered businesses in Nigeria is only 13% for 39.6 million businesses documented by SMEDAN.”
He said despite various government credit facilities and intervention for SMEs,only two million small businesses have been able to access intervention loans, a situation which he said has forced many dying businesses to seek alternative access to credit.
“Today in our database April 28, there are about 60 million Nigerians that are borrowing, two million businesses, but a lot of businesses today are still unable to access credit in Nigeria.
“Government funding directly to entrepreneurship in Nigeria is counter productive, it doesn’t get to small businesses.
“Credit is not only about borrowing, it’s a mechanism that unlocks opportunity for those who know how to use it,” he said.
While expressing delight that the Nigeria financial institutions is evolving, the guest lecturer announced that the CRC credit bureau in collaboration with MTN will soon launch an application that will monitor how much time people spend on their phone devices, for what purposes, and their locations with a view to determining their credit worthiness or indebtedness whenever they are seeking for one.