According to the agency in charge, the Federal Government’s Consumer Credit Scheme will launch with a target of N180 trillion available as loans to the beneficiaries. This information was released over the weekend. By the end of the following year, the Consumer Credit Corporation (CreditCorp) has intentions to launch with 500,000 beneficiaries.
Two million Nigerians have already registered using the agency’s official website,the organization has determined that a minimum of 80 million people are qualified for the program.
This is one of President Bola Ahmed Tinubu’s main campaign pledges, along with the student loan program, which has also been scheduled to start in September.
Uzoma Nwagba, the head of CreditCorp, told reporters that the organization was nearing the end of its preparations for the program’s launch. The intention is to enable financially engaged Nigerians to obtain loans for goods that could improve their standard of living without requiring them to pay cash up front.
“With consumer credit facility, if you have a modest income, you should be able to have access to a vehicle, solar panel, cell phone, laptop, education, house, and other things that improve the quality of your life, and you can pay for it over a prolonged period,” He stated.
The CreditCorp has been founded by the government and it aims to bolster the country’s credit infrastructure and give financial assurances to institutions that have traditionally been unwilling to lend owing to concerns about potential losses.
The introduction of a centralized credit scoring system, whereby each economically engaged Nigerian will have a credit score linked to their National Identity Number (NIN), is a crucial component of this endeavor.
Nwagba thinks that doing this will stop customers from avoiding their credit responsibilities.
“It means that every Nigerian who is economically active will have a credit score written on their NIN so that you cannot run away from your credit behaviours,” he said.
The Central Bank of Nigeria (CBN) is a key partner of CreditCorp, which has selected some 80 million Nigerians as the initiative’s target beneficiaries for consumer lending.
The CBN is a strong partner in this journey with us as well as the credit registry and credit bureaus,” the chairman said.
CreditCorp’s job is to allow financial institutions to lend more by either providing guarantees or bulk capital, even though the financial institutions will still be in charge of disbursing the credits.
Nwagba anticipates that 500,000 Nigerians, at most, will have benefited from consumer credit access by the end of 2025. Centralizing credit reporting is the ultimate goal in order to instill trust in financial institutions.
In reference to interest rates, Nwagba stated that although the financial institutions will determine the rates, CreditCorp will facilitate loans at more favorable rates by furnishing funds or guarantees.
Beneficiaries of consumer credit will pay back with interest at a concessionary rate, which is usually determined by the financial institutions they work with,” he stated.
“Our goal is, by providing and making capital easier to the financial institutions, they can also charge them lower interest, and it will be concessionary.”
While CreditCorp is still in the process of organizing its activities, more than two million people have already responded to its expression of interest.
Although the initiative’s ultimate goal is to benefit all Nigerians who are actively engaged in the economy, the first focus will be on civil personnel.
“If a consumer fails to repay the credit, they will be ruining their credit score, and that is a consequence we are enforcing.
“The borrower will suffer if they do not act right to their credit,” Nwagba stated.
Millions of Nigerians might benefit greatly from this revolutionary consumer credit program by being able to acquire life-improving products and services and, in the process, improve their general quality of life.
