FG Unlocks N100bn for Consumer Credit Scheme
By Patience Ikpeme
In a move aimed at boosting economic activity and improving access to credit, the Federal Government has released N100 billion to the Nigerian Consumer Credit Corporation (CREDICORP).
This funding will kick-start a nationwide consumer credit scheme targeting economically active Nigerians, starting with 500,000 civil servants.
According to Uzoma Nwagba, CEO of CREDICORP, the disbursement process is set to begin imminently. The scheme will be implemented through participating financial institutions (PFIs), which will manage the credit distribution to individual customers.
The first phase of the initiative will see 15,000 civil servants being credited in each round until the target of 500,000 is reached. After this, the scheme will be extended to other eligible members of the public.
Credit Direct, a subsidiary of the FCMB Group, is one of the first PFIs to partner with CREDICORP in this initiative. Starting in early September, civil servants on the Integrated Payroll and Personnel Information System (IPPIS) can benefit from reduced interest rates and flexible repayment plans.
Uzoma Nwagba expressed enthusiasm about the partnership, noting that it aligns with President Bola Tinubu’s commitment to improving the well-being of Nigerians. “We are excited to partner with Credit Direct to kick off President Tinubu’s consumer credit scheme with civil servants,” Nwagba said. “Through this partnership, civil servants can access instant and affordable credit, which will help them manage economic challenges and improve their quality of life.”
The broader goal of the CREDICORP initiative is to expand consumer credit access to 50 percent of economically active Nigerians by 2030. The scheme’s design, which mirrors the model used by the Development Bank of Nigeria (DBN), involves providing wholesale capital or credit guarantees to PFIs.
Key features of the credit offer include some of the lowest interest rates in the market, starting from September 3, 2024. Civil servants can access loans of up to N3.5 million, depending on their income and needs. Additionally, the scheme offers flexible repayment plans and a quick and easy application process.
President Tinubu earlier in the year endorsed the scheme, noting that consumer credit is vital for achieving social mobility and improving the standard of living for hardworking Nigerians. By building credit histories through responsible repayment, individuals can unlock more opportunities for a better life, while increased demand for goods and services can stimulate local industries and create jobs.
As the scheme takes off, civil servants and other eligible Nigerians are encouraged to visit the Credit Direct website or contact their customer service center for more information about the special credit offers and eligibility criteria. This initiative marks a significant milestone in the Federal Government’s efforts to boost economic stability and enhance the quality of life for millions of Nigerians.
