The Nigerian government is making a big change: if you take a loan and do not pay it back, it could affect your ability to get a passport, driver’s license, or even rent a house.
Let us break it down in simple terms.
What is Happening?
The government has set up a group called CREDICORP. They are creating a new system where your credit score (how good you are at paying back loans) will be connected to your NIN (National Identification Number).
So now, whenever you borrow money from a bank, a loan app, or even a small finance company, it will be tracked and tied to your NIN. If you pay back on time, great! If not, there will be consequences.
What Happens If You Do not Pay Your Loan?
If you do not pay your loan, you may:
- Be denied a new passport or passport renewal
- Not be able to apply for a driver’s license
- Have trouble renting a house
- Be blacklisted from getting another loan
According to CREDICORP’s boss, Uzoma Nwagba, this move is not to punish people, but to stop the bad habit of borrowing money and refusing to pay back. As he put it:
“There is no hiding place anymore.”
Why Is the Government Doing This?
There are a few reasons:
- To make people more responsible with money
- To help loan companies trust people again so they can give out more loans
- To help young Nigerians (especially NYSC members and those between 18–35) through a new loan program called YouthCred
- To grow the economy, especially by encouraging people to spend money on Nigerian-made products
Right now, Nigerians need ₦183 trillion worth of loans every year for things like school, small businesses, farming, or health. But many lenders are afraid to give loans because people often do not pay back.
What Is a Credit Score?
A credit score is like a report card for your borrowing habits. It tells lenders:
- If you have borrowed money before
- If you paid it back on time
- How much debt you have
A good credit score means you are trustworthy. A bad one means you are a risk. With this new system, your credit score will be tied to your identity (NIN), and it will follow you around like your BVN.
Is This Fair?
That depends.
- The good side:
If you are responsible and pay your debts, you will be rewarded maybe with easier access to loans, better services, and more trust from lenders. - The worrying side:
If someone falls on hard times and genuinely can not pay, will they be punished too harshly? Will the system be fair and transparent?
That is what many people are now asking. The government says the goal is to discipline, not punish.
What Should You Do?
- Only borrow what you can afford to pay back.
- Pay your loans on time, even small ones.
- Check your credit record and know your score.
- Ask questions before taking any loan, understand the interest and repayment terms.
Keep your NIN updated and protected.
End Note
This is a big shift in how money and identity are handled in Nigeria. Whether you are a student, a trader, a farmer, or a civil servant, this affects everyone.
If you are careful with loans, this new system could help you get more support and trust. But if you ignore repayments, it could literally close important opportunities for you
So, in this new era: borrow wisely, repay faithfully, and protect your name.
