Very commendable – this is a GREAT policy from the government:  “The Nigerian government has approved the takeoff of the first phase of the Consumer Credit Scheme, a pivotal initiative aimed at revolutionizing access to credit for Nigerians across the country… The scheme, spearheaded by the Nigerian Consumer Credit Corporation (Credicorp), marks a significant step towards enhancing financial inclusion and empowering individuals to achieve their economic aspirations.” If this works, many good things will happen.

Notice that our economy has not been responding very well to monetary tools like interest rate adjustments. Those tools are largely created by the Western economies with solid consumer credit systems. In Nigeria, we do not have any developed consumer credit system.

So, when the Central Bank of Nigeria (CBN) hikes interest rates, we hardly get any reduction in Demand since everyone uses cash here, and interest rates have minimal impacts since only very few have access to credits, to be influenced by the prime rates. In other words, the tools which the CBN uses hardly affect consumer spending which needs to be tamed to bring inflation down.

In reality, rate hikes in Nigeria push the cost of capital high for corporations and producers. and that reduces Supply which is actually needed to bring inflation down; corporate credit is relatively more developed than consumer credit in Nigeria. That is why for years, we have not been lucky to tame inflation.

So, if this consumer credit system works, good things will happen. The apex bank will have space to breathe with its tools. Good one, Team Nigeria. The key is a great execution; the policy is a good one.

—Our press release

President Bola Tinubu has approved the takeoff of the first phase of the Consumer Credit Scheme.

Consumer credit serves as the lifeblood of modern economies, enabling citizens to enhance their quality of life by accessing goods and services upfront, and paying responsibly over time. It facilitates crucial purchases, such as homes, vehicles, education, and healthcare, essential for ongoing stability to pursue their aspirations.

Through responsible repayment, individuals build credit histories, unlocking more opportunities for a better life. Additionally, the increased demand for goods and services stimulates local industry and job creation.

The president believes every hardworking Nigerian should have access to social mobility, with consumer credit playing a pivotal role in achieving this vision.

The Nigerian Consumer Credit Corporation (CREDICORP) achieves its mandate through the following:

(1) Strengthening Nigeria’s credit reporting systems, ensuring every economically active citizen has a dependable credit score. This score becomes personal equity they build, facilitating access to consumer credit.

(2) Offering credit guarantees and wholesale lending to financial institutions dedicated to broadening consumer credit access today.

(3) Promoting responsible consumer credit as a pathway to an improved quality of life, fostering a cultural shift towards growth and financial responsibility.

In line with the President’s directive to expand consumer credit access to Nigerians, the Nigerian Consumer Credit Corporation (CREDICORP) has launched a portal for Nigerians to express interest in receiving consumer credit.

This initiative, in collaboration with financial institutions and cooperatives nationwide, aims to broaden consumer credit availability.

Working Nigerians interested in receiving consumer credit can visit www.credicorp.ng to express interest. The deadline is May 15, 2024.

The scheme will be rolled out in phases, starting with members of the civil service and cascading to members of the public.

Ajuri Ngelale

Special Adviser to the President

(Media & Publicity)

Very commendable – this is a GREAT policy from the government:  “The Nigerian government has approved the takeoff of the first phase of the Consumer Credit Scheme, a pivotal initiative aimed at revolutionizing access to credit for Nigerians across the country… The scheme,… pic.twitter.com/CnXBwZxxVj

— Ndubuisi Ekekwe (@ndekekwe) April 25, 2024

The Nigerian government has approved the takeoff of the first phase of the Consumer Credit Scheme, a pivotal initiative aimed at revolutionizing access to credit for Nigerians across the country. 

This announcement was made through a statement by Ajuri Ngelale, the special adviser to the president on media and publicity, on Wednesday. The scheme, spearheaded by the Nigerian Consumer Credit Corporation (Credicorp), marks a significant step towards enhancing financial inclusion and empowering individuals to achieve their economic aspirations.

Ngelale highlighted that the scheme was conducted in collaboration with financial institutions and cooperatives nationwide, with the aim of expanding consumer credit availability. The initiative will be implemented in phases, initially targeting civil servants before being extended to the wider public. 

This phased approach is designed to ensure broad access to consumer credit while ensuring effective rollout and management of the program.

“Working Nigerians interested in receiving consumer credit can visit credicorp.ng to express interest. The deadline is May 15, 2024,” he said.

“The president believes every hardworking Nigerian should have access to social mobility, with consumer credit playing a pivotal role in achieving this vision.”

Key Features of the Consumer Credit Scheme

1. Target Demographic: The Consumer Credit Scheme is designed to cater to the needs of working Nigerians, reflecting President Tinubu’s commitment to facilitating social mobility and economic empowerment. By providing access to credit, the scheme aims to enable individuals to enhance their quality of life and pursue their goals.
2. Operational Framework: At the core of the scheme lies the principle of responsible borrowing and repayment. Through timely and conscientious repayment, borrowers can establish credit histories, unlocking a plethora of opportunities for future financial endeavors.
3. Application Process: To streamline access to credit, Credicorp has launched a dedicated portal, www.credicorp.ng, where interested Nigerians can express their interest in availing of consumer credit. This user-friendly platform simplifies the application process and ensures that individuals can easily navigate the requirements.
4. Role of CrediCorp: As the driving force behind the initiative, the Nigerian Consumer Credit Corporation (Credicorp) plays a pivotal role in facilitating credit access. By collaborating with key stakeholders such as the Central Bank of Nigeria (CBN), financial institutions, and policymakers, Credicorp endeavors to address structural barriers and stimulate market growth.
5. Phased Implementation: The scheme will be rolled out in phases, commencing with civil servants before extending to the broader public. This phased approach allows for targeted outreach and ensures that the scheme can be effectively tailored to meet the diverse needs of different demographic groups.
6. Deadline for Participation: For the inaugural phase of the scheme, interested individuals must register on or before May 15th, 2024. This deadline underscores the importance of timely participation and emphasizes the urgency of the initiative in addressing the financial needs of Nigerians.
7. No Cost to Applicants: Importantly, there are no associated fees or charges for accessing the portal or applying for loans under the scheme. Nigerians are encouraged to remain vigilant against fraudulent schemes and unauthorized fees, as the government prioritizes transparency and accessibility.
8. Impact and Benefits: Beyond expanding credit access, the scheme aims to strengthen Nigeria’s credit reporting systems and foster a culture of financial responsibility. By offering credit guarantees and wholesale lending to financial institutions, Credicorp seeks to promote responsible consumer credit as a catalyst for socioeconomic growth and empowerment.

In essence, the launch of the Consumer Credit Scheme represents a landmark initiative aimed at promoting financial inclusion and empowering individuals to achieve their economic aspirations. With Tinubu’s endorsement and Credicorp’s strategic initiatives, the scheme is said to hold the promise of transforming the financial sector of Nigeria, unlocking new opportunities for economic growth.