Access Holdings Plc (NGX: ACCESSCORP) will establish a consumer lending subsidiary.
In a regulatory filing on Wednesday, Access Holdings stated that it “is pleased to inform the investing public and the Nigerian Exchange Ltd that it as obtained the Central Bank of Nigeria’s approval-in–principle to establish a consumer lending subsidiary to be known as Oxygen Company Limited.”
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The financial services company says that the “subsidiary will make a positive impact on the financial landscape by providing innovative and seamless digital lending solutions to address distinct challenges faced by individuals” in a rapidly evolving world.
The proposed subsidiary will commence operation upon obtaining final operating licence from the Central Bank of Nigeria.
Consumer lending is the category of financing centered on individual and household consumers. It includes home and auto loans, as well as personal loans extended to people who use the funds for individual or family purposes.
Th Central Bank of Nigeria Consumer Protection Regulations guidelines defined Consumer loan as a loan granted to an individual (whether secured or unsecured) for personal, family, or household purposes.
In 2020, Aliko Dangote, Africa’s richest man in a visit to Ahmed Bola Tinubu, the current President of Nigeria, advocated for the need to adopt proper mortgage financing and consumer credit in Nigeria.
According to Dangote, the availability of these is important in tackling corruption, alleviating the sufferings of people and reducing the hardship encountered by buyers when purchasing goods in the country.
Dangote said, “ I believe what will help us the most is mortgage financing or consumer credit. Most people go into corruption because they are worried about how to get a roof over their head, or how to buy furniture because we live in a society where everything you’re buying you pay cash.”
The business tycoon had previously stressed the need for the Central Bank of Nigeria (CBN) and commercial banks to develop consumer credit products in order to encourage low income earners to engage more in loan taking.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
