The Federal Government has announced a new initiative to provide interest-free consumer credit of up to N2 million for Nigerians, in a bold move to ease financial burdens and improve living standards. The scheme, which is being championed by the Consumer Credit Corporation of Nigeria (Credicorp), is designed to help citizens purchase essential goods and services such as school fees, rent, household appliances, and digital devices, not by paying upfront, but through convenient instalments.
Speaking to journalists after a meeting with President Bola Tinubu at the Presidential Villa in Abuja, Uzoma Nwagba, the Managing Director of Credicorp, explained that the initiative is not about handing out loans directly to individuals. Instead, Credicorp will serve as a wholesale financier and risk-sharer, enabling banks, fintechs, cooperatives, and microfinance institutions to offer affordable consumer credit. According to Nwagba, the model is simple: instead of paying millions out-of-pocket for a product like a car or laptop, individuals will now be able to pay gradually over several months, without interest.
“This is what consumer credit means,” he said. “We’re not giving out loans directly, but we are building the systems, providing guarantees, and offering support so that credit becomes more accessible and non-exploitative.”
Credicorp was established by Executive Order in April 2024, with a clear mission to make consumer credit a key feature of Nigeria’s financial ecosystem. Nwagba stressed that while most Nigerians are familiar with business loans, consumer credit remains underdeveloped. This initiative is meant to change that.
The goal is threefold: to improve the quality of life for Nigerians, reduce the incentive for corruption, and boost demand for locally made goods and services. President Tinubu, Nwagba revealed, is personally committed to the idea, believing that Nigerians should not have to save for years, or worse, never afford, a decent standard of living. “In many countries, people earning the same as Nigerians live better simply because they have access to structured credit,” Nwagba noted.
He further explained that the lack of access to credit is one of the underappreciated contributors to corruption, particularly among public servants. While some cases are driven by greed, many stem from financial pressure. With proper access to credit, workers can manage their income more effectively and reduce the temptation to cut corners.
The program will roll out in phases, starting with federal civil servants, and already, over 1.6 million expressions of interest have been received since a nationwide call for applications went out in April. While the government is taking the lead in setting up the framework, Nwagba made it clear that public funding alone cannot meet the demand. If half of Nigeria’s population were to access consumer credit, the total demand would approach N180 trillion, a figure many times larger than the national budget.
To meet this challenge, Credicorp will channel wholesale capital to qualified financial institutions and offer credit guarantees to reduce lending risks. A National Credit Guarantee Company, developed in collaboration with the Bank of Industry and other agencies, is already in place to support this effort.
One critical barrier to consumer credit, according to Nwagba, is poor credit data. Many Nigerians either lack credit histories or have fragmented records that make it difficult for lenders to assess risk. To address this, Credicorp is working with the Central Bank of Nigeria and credit bureaus to build a centralized credit reporting system tied to individuals’ National Identification Numbers (NINs). This will enable better credit scoring and support responsible lending.
But beyond the numbers and infrastructure, Credicorp also wants to change mindsets. “There’s a stigma around credit in Nigeria, as if it’s a bad thing. But in developed economies, borrowing is how people build lives, homes, and businesses. It’s time we embraced that reality responsibly,” Nwagba said.
One key part of the program is its effort to stimulate local production. Under the SCALE initiative (Securing Consumer Access to Local Enterprise), Credicorp is partnering with Nigerian manufacturers to ensure that credit is directed towards locally made goods, from vehicles and tricycles to solar kits and furniture. In October 2024, Credicorp reached a deal with the Nigerian Automotive Design and Development Council and domestic vehicle manufacturers to make locally produced vehicles available to consumers through loans pegged at a single-digit interest rate of 9 per cent, significantly lower than the 35–40 per cent typically charged on personal loans.
This initiative is especially impactful in sectors like solar energy, where manufacturers are being encouraged to increase local assembly. Credicorp links better loan rates to higher local content, creating a direct incentive for manufacturers to invest in the local supply chain. “The more local components you use, the better the credit terms for your customers, and the more customers we refer to you,” Nwagba explained.
One success story already taking shape involves TVS, Nigeria’s largest tricycle manufacturer. Through a partnership with Accum Microfinance Bank, Credicorp is helping riders own their vehicles outright and repay in instalments. This is a major improvement over the informal and often exploitative hire-purchase arrangements that have long been the norm for commercial drivers.
Ultimately, the consumer credit initiative represents a paradigm shift. It promises not just economic benefits, but dignity, choice, and long-term stability for everyday Nigerians. With strategic partnerships, robust infrastructure, and sustained government support, Credicorp aims to usher in a new era of responsible credit culture that fuels both individual prosperity and national development.
