Monday, July 24, 2006

Govt plans consumer credit bureau for middle class
From Oghogho Obayuwana, Abuja

THE Federal Government is in the process of establishing a consumer credit bureau as one of the surest ways of reviving the nation's middle class, which collapsed due to the accumulated years of economic mismanagement.

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According to the Foreign Affairs Minister and Head, Economic Team, Dr. Ngozi-Okonjo-Iweala, a national home mortgage system is being launched now in the country to sustain the emerging middle class by guaranteeing it access to both mortgage and credit for consumption and investment purposes.

The minister disclosed this recently in Kingston, Jamaica while delivering the 2006 yearly Scotia Bank Corporate Lecture. The lecture entitled: "Reforming emerging economies: Some challenges from Nigeria and Jamaica" was circulated to the media at the weekend by the minister's Special Adviser on Communications, Mr. Paul Nwabuikwu.

Okonjo-Iweala described the expansion of the country's middle class as a priority of the President Olusegun Obasanjo's government. To achieve this, she says, there is a focus on ensuring that credit facilities are available "to support the growth of this class which, in every developed country, plays a key role in the establishment and sustenance of prosperity"

The aim of the lecture was to share experiences of macroeconomic management with political and private sector leaders in Jamaica. The audience comprised Jamaican cabinet ministers, business executives, senior politicians, and civil society leaders.

Admitting that Nigeria did not have all the answers, Okonjo-Iweala noted that Jamaica could learn quite a few lessons from Nigeria's recent experience given the many positive achievements. She also cited the debt deal with the Paris Club which led to a write-off of N18 billion from the country's debt which enables Nigeria's complete exit from the Paris Club.

The overall improvement on the economy, she maintained, had been re-affirmed by two leading international credit agencies, Fitch and Standard & Poor's which both have given the country a BB-rating, putting Nigeria on a par with other emerging economies such as Brazil, Turkey, Vietnam and Venezuela.

The Caribbean country (Jamaica) today faces a number of economic challenges such as managing a growing public debt (about 135 per cent of GDP), maintaining fiscal sustainability, and tackling violent crimes which raise the cost of doing business for the private sector.