ABUJA, NIGERIA — June 18, 2025 | By IDNN Economy & Reform Desk
In a bid to ease the burden of cash-based living, the federal government has launched a landmark consumer credit program that will give everyday Nigerians access to interest-free loans of up to ₦2 million for essential purchases.
The initiative, coordinated by the Consumer Credit Corporation of Nigeria (Credicorp), aims to revolutionize Nigeria’s financial culture—starting with federal workers, informal traders, and productive individuals seeking to buy cars, pay school fees, or purchase household goods.
“This is not a handout. This is structured credit access with dignity,” said Uzoma Nwagba, Managing Director of Credicorp.
PAY IN INSTALLMENTS, LIVE WITH DIGNITY
Under the new scheme, instead of paying upfront for big-ticket items, Nigerians can now pay gradually through banks and fintechs—backed by Credicorp’s risk guarantee.
“You want a ₦2 million car? You pay ₦100,000 per month for 20 months. That’s the model,” Nwagba explained.
Credicorp won’t lend directly but will underwrite and fund financial institutions to offer these loans at zero interest or single-digit rates.
TRANSFORMING CREDIT CULTURE
Beyond lending, Credicorp is working with the Central Bank of Nigeria (CBN) and credit bureaus to build a centralized system that links borrowing to citizens’ National Identification Numbers (NINs), allowing accurate scoring and real-time visibility.
“We must eliminate the stigma that credit equals debt traps. In functional economies, credit equals opportunity,” Nwagba said.
The federal government has already received 1.6 million expressions of interest since April, and the phased rollout begins with verified civil servants.
🇳🇬 SCALING LOCAL INDUSTRY
In a strategic twist, the program also seeks to stimulate local manufacturing. Through its SCALE (Securing Consumer Access to Local Enterprise) initiative, Credicorp is linking consumer credit to locally made products—like Nigerian-assembled tricycles, solar kits, and furniture.
Manufacturers like TVS and three Nigerian solar firms have already signed on. The incentive? Lower interest rates for customers when producers increase local content.
“It’s a win-win: more affordable loans for Nigerians, and a boost for domestic industry,” Nwagba noted.
ANTI-CORRUPTION AND ECONOMIC STABILITY
President Tinubu, who signed Credicorp into law via Executive Order in April, has linked the initiative to wider anti-corruption efforts, arguing that access to structured credit reduces financial desperation that often leads to graft.
“He believes no Nigerian should need to wait 10 years or steal to live decently,” said Nwagba.
The initiative is expected to unlock trillions in consumer spending without burdening the national budget. Instead, Credicorp will act as a wholesale financier to microfinance banks, offering guarantees and concessional capital.
🧨 This is IDNN. Independent. Digital. Uncompromising.
