An economist, Mr Ahmed Popoola, has said Nigeria’s credit penetration rate of 13 per cent was too low.
He made the assertion on Monday while delivering the maiden collaborative lecture of Kwara State University (KWASU), organised by the Faculty of Management and Social Sciences (FMSS) and the Centre for Advancement and Industrial Collaboration (CAIC).
Popoola, the Managing Director and Chief Executive Officer of CRC Credit Bureau Limited, said the penetration rate was too low to support the country’s ambition of becoming a thriving entrepreneurial economy
Speaking on the theme: “Finance, Entrepreneurship, and the Infrastructure of Trust”, the economist called for increased access to credit facilities for entrepreneurs as a pathway to economic growth.
He noted that out of the country’s 35.6 million registered enterprises, only about two million have access to formal credit, describing the situation as a major constraint on business development.
“Entrepreneurship cannot thrive without an entrepreneurial economy.
“With access to finance, enterprises are better positioned to contribute meaningfully to overall economic development,” he said.
Popoola added that access to credit played a critical role in the prosperity of nations, as it affects individuals, businesses and governments alike.
“Where a conducive environment for starting and running a business exists, supported by access to finance, economic prosperity is almost certain,” he said.
The financial expert, however, stressed the importance of a unified identification system to improve access to finance, advocating the integration of multiple identification platforms into the National Identification Number (NIN).
“We need to accelerate the fusion of tax identification numbers, passport numbers, Bank Verification Numbers (BVN), driver’s licence numbers and voter registration numbers with the NIN,” he said.
Popoola also underscored the need to safeguard personal data, warning that while data was central to financial systems, it must be protected against misuse and unauthorised access, especially in an era of increasing digitalisation.
He further urged the government to mandate or incentivise organisations such as telecommunications companies, power distribution firms, insurance companies and capital market operators, property developers and tax authorities to share relevant data with credit bureaus to improve credit access.
According to him, other drivers of a strong entrepreneurial ecosystem included a robust financial services sector, sound financial structures and efficient socio-economic infrastructure.
In his remarks, the Dean of the Faculty of Management and Social Sciences, Prof. Rahman Mustapha, said the lecture was part of efforts to bridge the gap between academia and industry.
He described the theme as timely, particularly in an era where financial innovation, entrepreneurial drive and institutional trust were critical to sustainable development.
Also speaking, the Vice Chancellor of KWASU, Prof. Jimoh Shaykh-Luqman, said the initiative was aimed at connecting theoretical knowledge with practical industry experience.
“There is a lot needed by the public to understand about financing, creditworthiness and securing funding for businesses.
“We are committed to bridging gaps between the ivory tower, industry and communities.
“This is the only way universities can contribute meaningfully to national development,” he said.
