The integration of credit histories into Nigeria’s National Identification Number (NIN) database is poised to revolutionise the country’s developing digital identity ecosystem, according to industry experts. This initiative intends to create a national credit database, providing each citizen with a credit profile influenced by their borrowing and repayment behaviour.
According to the National Orientation Agency (NOA), the new system will connect each Nigerian’s credit score to their NIN. A credit score—ranging between 300 and 850—reflects a person’s financial reliability and ability to repay loans.
Experts say the initiative could greatly expand access to formal credit, with total NIN enrolment standing at 119.62 million at the end of April. However, this could also create privacy and data protection vulnerabilities.
“There are positive sides to how this is going to help individuals build credit histories, improve access to financial services, and reduce fraud to promote financial inclusion, particularly among marginalised populations. However, there are concerns about privacy risks and potential negative impacts on vulnerable groups,” said Umanhonlen Gabriel, founder of Cyber Odyssey.
Gabriel stated that while the Nigerian Consumer Credit Corporation (CREDICORP) is tasked with broadening access to credit for working Nigerians, the implementation must include strong privacy safeguards. Vulnerable groups without formal identification or access to technology risk being excluded, he warned.
“Striking the right balance between expanding access to credit and ensuring privacy and security is essential to ensure this initiative benefits all Nigerian consumers equitably,” he added.
Usman Abdul-Alim, an information security analyst, warned that linking credit data to NIN introduces cybersecurity and data protection risks.
“These risks include centralised breach vulnerability. Linking NIN to credit histories creates a centralised repository of sensitive data identity and financial history. This becomes a high-value target for cybercriminals,” he said. “A single breach could expose millions of Nigerians to identity theft, financial fraud, and unauthorised access to their accounts.”
He further noted that Nigeria’s cybersecurity infrastructure remains underdeveloped, with many government and third-party platforms lacking vital protections such as encryption, access controls, and intrusion detection.
According to the NOA, credit scores are essential in determining individuals’ eligibility for loans and other financial services. However, this has been absent in Nigeria due to the lack of data needed to establish a credit score. The new credit system, led by the National Identity Management Commission (NIMC) in partnership with credit bureaus and financial institutions, is expected to centralise citizens’ credit data and make NIN a unique identifier.
Analysts believe that this move could be a game-changer for micro and small businesses that have long struggled to access formal credit due to a lack of credit history. With the NIN as a central reference point, credit data will become more accessible, potentially unlocking financial opportunities for underserved Nigerians.
However, privacy advocates caution that, without stringent safeguards, linking sensitive financial data to a national ID system could expose citizens to surveillance, profiling, or data breaches.
Though the Nigerian Data Protection Act (NDPA), enacted in 2023, is for data handling regulations, experts argue that data enforcement remains weak and regulatory clarity around data sharing is still lacking.
In response, NIMC has assured that all data-sharing activities will comply with national data protection laws and require user consent. The commission also said encryption and other security measures are in place to prevent unauthorised access.
Still, the growing use of NIN from SIM card registration to social welfare and now credit scoring has prompted calls for a national conversation on balancing digital progress with privacy rights.
“Without strict regulatory oversight, linking NIN with credit data can lead to unauthorised data sharing between institutions,” Abdul-Alim noted. “Sensitive information could be sold, shared with advertisers, or used to profile citizens without consent.”
He noted that many Nigerians may not fully understand how their data are being collected and used, and that a lack of clear privacy notices and opt-in mechanisms increases the risk of misuse.
“A compromised NIN-credit link could enable phishing, SIM swaps, and other forms of digital fraud. Exposed data could allow fraudsters to impersonate individuals or manipulate their financial profiles,” he concluded.(BusinessDay)
