By Nume Ekeghe
One of theÂ leading credit bureauxÂ in Nigeria, CRCÂ Credit BureauÂ disclosed thatÂ it has increased its credit files to 15,470,585 as at the end of February 2018.
This covered dataÂ from various sectors of the economy.
The firm also attributed the decline inÂ non-performing loansÂ (NPLs) in the banking sectorÂ to diligent credit dataÂ and improved risk management skills.
TheÂ Managing Director/Chief Executive of CRC Credit Bureau, Mr. Tunde Popoola, made this known at the CRC-RIMAN RiskÂ roundtable held in Lagos recently.
He said that there hadÂ been loan growth in recent times as well as new products for SMEs, growth in consumer loans, increase in credit services from retailersÂ banksÂ as well asÂ the introduction of SME desks in some banks as a result of worthy credit data in Nigeria.
On his company milestone, he said: â€œWe currently have over 15million credit records in our repository and growing daily. Our customer base covers over 1000 institutions as at February 2018 from various sectors of the Nigerian economy.â€
He furtherÂ statedÂ that these data where gotten from commercial banks,Â microfinance banks, primary mortgage institutions, merchant banks,Â other financial institutions,Â courier,Â cooperativeÂ societies, telcos,Â the discos, pharmaceutical companies, autoÂ dealers,Â insurance, oilÂ and gas,Â leasing and conglomeratesÂ sectors.
Speaking on challenges facing credit bureauxÂ in Nigeria, he said that the high cost of operationÂ was a major problem facing his sector.
HeÂ added:Â â€œCredit bureauxÂ run with sophisticated and expensiveinformation technology infrastructure including credit bureau software, state of the art data analytics engines, communication/internet access, 24/7 availability resulting in high power and maintenance costs, full service disaster recovery infrastructure with complete software and hardware components, etc.
â€œTo operate effectively, credit bureaus need economies of scale. The higher the volume of searches/queries conducted, the lower the transferred cost of service to lenders. Low volumes and low cost is not sustainable for the bureau industry to serve Nigerian lenders.â€
Continuing, he said:Â â€œTo buttress the extent of low data quality submission, it is pertinent to state thatÂ bank verification number (BVN)compliance stood at only 43.52Â per centÂ andÂ company registration number (RCÂ number)Â compliance stood at 64Â per centÂ as at December 2017.â€
Also,Â theÂ Partner,Â Financial ReportingÂ Group at EY, Mr.Â Jamiu Olakisan gave a holistic lecture on the challenges and what could go wrong on the recent adoption of the IFRS 9 reporting.
Olakisan said: â€œClassification and measurement not a big deal,Â lack of sufficient professionals with required skills, Knowledge gap on the part of the regulators and timing of commencement of IFRS 9 projects by Nigerian entities.
â€œInsufficient internal historical data required to support model building, lack of desired relationship between macroeconomic variables and losses, absence of sufficient forward looking macro-economic variables for to support modelling.â€