CRC chief advocates credit reforms for SME growth

Dr. Ahmed Popoola, the Managing Director/Chief Executive Officer of CRC Credit Bureau Limited, has articulated a critical need for sweeping reforms within Nigeria's credit system, aiming to bridge the substantial $32.3 billion financing gap for small and medium enterprises (SMEs). Speaking at the inaugural Collaborative Lecture at Kwara State University, Popoola underscored that credit is the fundamental "infrastructure of opportunity" essential for economic development. His analysis points to a stark reality: Nigeria's credit penetration stands at a mere 13% of GDP, lagging significantly behind the global average of 91% and even the Sub-Saharan African average of 30%.

The lecture, titled ‘Finance, Entrepreneurship, and the Infrastructure of Trust’, brought together academics, policymakers, and financial sector leaders, underscoring the collaborative effort required to tackle this challenge. Popoola's vision centers on building a robust "Infrastructure of Trust," an integrated system encompassing financial institutions, identity frameworks like the BVN and NIN, credit bureaus, rating agencies, payment systems, and regulatory structures. He argued that while government interventions may have good intentions, their impact has historically been limited, stressing that sustainable access to finance must be driven by a market-based financial infrastructure underpinned by reliable data.

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Credit is not just about borrowing. It is the infrastructure of opportunity, a bridge that connects where you are today to where you have the potential to be. Nigeria has the institutions. We must now build the data ecosystem to unlock them.

From a Nigerian perspective, this discussion is vital because SMEs are the backbone of the economy, yet they are consistently starved of the capital needed to thrive and create jobs. The emphasis on technology and data—such as open banking, AI-driven credit scoring, and alternative data models—reflects a forward-looking approach that aligns with global trends. Popoola's work at CRC Credit Bureau, which has helped deepen credit bureau penetration from less than 5% in 2009 to over 40% and maintains profiles for over 60 million Nigerians, demonstrates tangible progress. The call for a unified national framework for access to finance and strengthened identity systems is a practical roadmap for unlocking the potential of Nigerian entrepreneurs and fostering inclusive economic growth.

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The ‘Infrastructure of Trust’ is an integrated system comprising financial institutions, identity frameworks such as the Bank Verification Number and National Identification Number, credit bureaus, rating agencies, payment systems, collateral registries, and regulatory structures that enable efficient credit markets.