To assist Nigerians in meeting their necessities without having to pay for them all at once, the Federal Government has introduced a novel consumer credit program that offers interest-free instalment financing of up to N2 million.
The program, led by the Consumer Credit Corporation of Nigeria (Credicorp), aims to boost the local economy, enhance livelihoods, and reduce financial strain.
Credicorp will operate as a wholesale financier and risk-sharer instead of making direct loan payments, collaborating with banks, fintechs, cooperatives, and microfinance organisations to provide structured consumer credit for things like rent, school fees, digital gadgets, and home appliances.
The objective is to assist citizens in making interest-free, reasonable monthly payments for necessities.
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According to Credicorp’s Managing Director, the program isn’t about conventional borrowing. Rather, the goal is to establish a credit environment that enables Nigerians to live well without having to save for years or become victims of predatory financial practices.
The goal of this change is to normalise consumer credit availability, which is still lacking in the nation.
The overarching goal is to lower living expenses, lessen the motivation for corruption, and increase demand for products manufactured in Nigeria. According to reports, President Bola Tinubu is firmly in favour of the plan because he believes that better access to finance is essential to improving living conditions. Credicorp stated, “Nigerians shouldn’t live below their potential just because they lack structured credit access.”
Since applications opened in April, more than 1.6 million people have shown interest in the first phase of the rollout, which is aimed at federal civil officials. However, governmental spending alone is insufficient due to Nigeria’s vast population.
Through a National Credit Guarantee Company created in collaboration with the Bank of Industry and other partners, Credicorp will close the gap by providing wholesale capital and credit guarantees to financial institutions.
