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  • Only three percent of workers accessed consumer credit – CREDICORP

    Only three percent of workers accessed consumer credit – CREDICORP

    The Nigerian Consumer Credit Corporation (CREDICORP) has revealed that only three percent of Nigerian workers accessed formal consumer credit in the past year, exposing the significant gap in Nigeria’s credit system.

    Speaking in Abuja during the World Consumer Rights Day, Uzoma Nwagba, CEO of CREDICORP, noted: “For consumer credit to make a real difference in the economy, it must reach 50 percent of the country’s GDP, amounting to N176 trillion. At present, the country falls short, with a credit gap of N141.3 trillion.”

    He stated that the lack of consumer credit access is not due to insufficient funds but rather a breakdown of trust in the system. “Large sums already circulate within the financial sector and could be mobilized, yet millions remain unable to access credit due to systemic inefficiencies.”

    Nwagba pointed out this challenge goes beyond policy and requires innovation. He explained that consumer credit must be made widely accessible through creative approaches, which in turn will attract the necessary regulations, infrastructure, and economic frameworks to sustain it.

    According to him, consumer credit serves two important functions. First, it is a product that must be structured like any other financial service to reach those who are currently excluded. He noted that innovative solutions such as mobile nano-loans, instant credit approvals at purchase points, “buy now, pay later” options, and digitized savings group records could expand credit access. He also stated that specially designed loan products for women and youth would ensure broader financial inclusion.

    Secondly, consumer credit plays a key role in unlocking access to essential goods and services. He explained that credit enables people to afford solar home systems, digital devices, vehicles, improved housing, and household furniture, which in turn supports job creation and economic growth. He noted that smartphone penetration in Nigeria is still below 30 percent, but increased access to credit would allow more people to acquire digital devices and participate in the modern economy.

    To bridge the N141.3 trillion credit gap, Nwagba stated that CREDICORP is working to build a strong credit infrastructure that will make access to loans easier, safer, and more reliable. 

    He explained that this involves ensuring that all working Nigerians have a dependable credit score that facilitates access to financial opportunities. He added that the Central Bank of Nigeria’s (CBN) movable collateral registry and global standing instruction (GSI) should be made more accessible to ethical lenders, while alternative forms of collateral, including digital assets, agricultural output, and even legally quantifiable labor, should be explored.

    He also spoke about CREDICORP’s role in providing wholesale lending and credit guarantees to financial institutions, allowing them to extend loans to a larger segment of the population. Beyond lending, he noted that a cultural shift is necessary to make consumer credit more widely understood and accepted as a tool for financial empowerment.

    CREDICORP aims to ensure that at least 50 percent of all working Nigerians have access to consumer credit by 2030. The organization is already seeing progress, with more individuals and businesses benefiting from its initiatives.

    Nwagba stated that CREDICORP is not just offering loans but creating a system that supports financial stability and economic opportunity. He added that partnerships with financial institutions, regulators, innovators, and international organizations will continue to play a role in achieving this vision.

    He described the journey towards consumer credit expansion as long but essential, with the potential to reshape Nigeria’s financial landscape and drive sustainable economic growth.

  • CREDICORP promises equal treatment for women

    CREDICORP promises equal treatment for women

    The Consumer Credit Corporation (CREDICORP) has committed to a workplace where women are valued and treated equally. The company stated that women will not be paid less, empowered less, or judged by anything other than their abilities and performance.

    Engineer Uzoma Nwagba, Chief Executive of CREDICORP, made the disclosure on Saturday, to mark the International Women’s Day.

    He stated that CREDICORP wants to set an example by hiring talented women and giving them equal chances to succeed.

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    “We are building an example. For many things. Including hiring the most talented women and giving them an equal chance – making the most of their hard work, skill, and intuition,” Nwagba said.

    He then revealed the company’s current workforce numbers, showing the strong presence of women in leadership roles. “On this International Women’s Day, Women at CreditCorp constitute: 67 per cent of our Executives (a clear statement by President Tinubu himself); 50 per cent of our Management and 52 per cent of our staff.”

    Nwagba said CREDICORP is intentionally making sure that gender does not affect the company’s merit-based system. “We are also deliberate, that gender would not be a factor in the Meritocracy of CREDICORP,” he stated.

  • Credicorp, NADDC seal N20b deal for locally-assembled automobiles

    Credicorp, NADDC seal N20b deal for locally-assembled automobiles

    The Nigerian Consumer Credit Corporation (Credicorp) and the National Automotive Design and Development Council (NADDC) signed a N20billion consumer credit fund Memorandum of understanding  (MoU) to make it easy for Nigerians to buy new locally manufactured vehicles on credit.

    The Managing Director CEO CrediCorp, Uzoma Nwagba said the idea is to remove barriers stopping people from accessing credits to be able to buy brand new vehicles locally manufactured and other digital devices.

    Nwagba spoke the signing of MoU in Abuja, stating that the government is taking a bait with this initiative amount adding that the success of this first phase will pave way for more.

    He said the NADDC is a strong partner in this as it sets the standard on how the car loan can be run smoothly without hitches. The arrangement is that whoever is qualified for the loan gets the car but not the money, the payment is done with the car dealers then an arrangement of repayment is made through the car dealers. It is car manufacturers that deliver the car to the loan beneficiaries.

    Read Also: CREDICORP to connect beneficiaries with local vendors, manufacturers

    According to him, President Bola Tinubu is committed to bringing Peugeot and Dunlop back to Nigeria. He said automobile is just one of the sectors to benefit from CrediCorp.

    The Director-General, NADDC, Joseph Osanipin said it is a significant step towards promoting Nigeria’s automotive industry, stating that this programme is to ensure Nigerians access credits for new cars and motorbikes but it all has to be locally made.

    Osanipin said it is better late than never, which is why the scheme is coming up now. President Tinubu hope agenda is to stimulate the economy and this program is part of it.

  • Credicorp, NADDC sign N20bn MOU fund for locally assembled automobiles

    Credicorp, NADDC sign N20bn MOU fund for locally assembled automobiles

    The Nigerian Consumer Credit Corporation (CrediCorp) and the National Automotive Design and Development Council (NADDC) have signed a Memorandum of Understanding (MOU) to launch a N20 billion consumer credit fund aimed at making it easier for Nigerians to purchase locally manufactured vehicles on credit.

    CrediCorp’s Managing Director/CEO, Engr. Uzoma Nwagba, emphasized that the initiative seeks to eliminate barriers to accessing credit, enabling Nigerians to acquire new locally produced vehicles and digital devices. 

    He shared these insights during the MOU signing ceremony in Abuja, adding that the government’s investment in this program is a strategic move, with the potential for further phases contingent on the success of the first.

    Nwagba highlighted NADDC’s pivotal role in ensuring the smooth operation of the car loan program. 

    He said that under the arrangement, eligible individuals will receive vehicles, not cash, with payments made directly to the car dealers. 

    Repayment will be arranged through these dealers, with car manufacturers delivering the vehicles to loan recipients.

    In his remarks, Nwagba noted that President Bola Ahmed Tinubu is keen on reviving the Peugeot and Dunlop brands in Nigeria, underscoring the administration’s focus on boosting the automotive sector. He further stressed that the CrediCorp initiative is not limited to automobiles, with other sectors set to benefit.

    Joseph Osanipin, Director-General of NADDC, called the agreement a significant step in supporting Nigeria’s automotive industry. 

    He explained that the scheme aims to ensure Nigerians can access credit for new cars and motorbikes, but with the critical condition that they be locally manufactured.

    Osanipin acknowledged the importance of timing, stating that “it is better late than never,” and emphasized that the scheme aligns with President Tinubu’s economic stimulus agenda.

  • CREDICORP to connect beneficiaries with local vendors, manufacturers

    CREDICORP to connect beneficiaries with local vendors, manufacturers

    In a bid to drive local manufacturing and trading industries, the Nigerian Consumer Credit Corporation (CREDICORP) has flagged off its “S.C.A.L.E.” (Securing Consumer Access for Local Enterprises) programme.

    Aimed at channeling credit beneficiaries to local vendors and manufacturers, the S.C.A.L.E. is a transformative initiative to accelerate growth of local industries by providing consumer credit to Nigerians specifically for purchase of goods and services of local vendors and manufacturers. This is a part of President Bola Tinubu’s vision for the acceleration of consumer credit access for Nigerians: to improve quality of life, stem corruption, and catalyse industry, said CREDICORP’s Chief Executive, Uzoma Nwagba.

    According to him, S.C.A.L.E. was a bold step towards supporting Nigerian enterprises by accelerating demand, which in turn grows local industries and creates jobs.

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    “This programme connects Nigerian consumers with credible local manufacturers and vendors across critical sectors, while ensuring consumers afford these products via affordable consumer credit.

    “CREDICORP seeks to drive an initial one million credit-backed consumers to local vendors and manufacturers.

    “CREDICORP invites local vendors and manufacturers across the country to participate in this transformative programme. Interested parties should submit an Expression of Interest (EOI) by visiting the official S.C.A.L.E. website: www.credicorp.ng/scale,” he said.

    Continuing the CREDICORP boss said the S.C.A.L.E. Programme would empower both consumers and producers to thrive, by driving access to locally made products, and incremental value addition, across five high-impact thematic areas:

    “Home Improvement (Furniture, Appliances & Building Materials): S.C.A.L.E. will enable households to upgrade their living standards by heavily incentivizing consumer credit for locally-manufactured furniture, building materials, and appliances.

    “Mobility (esp. CNG & Electric vehicles): S.C.A.L.E. aims to promote accessible transportation by facilitating access to compressed natural gas (CNG) and electric vehicles (cars, motorbikes, keke, bicycles). This will enable cheaper and cleaner transportation, and stimulate growth and value addition in Nigeria’s automotive sector.

    “Electronics (Digital Devices): S.C.A.L.E. will provide consumers with affordable access to essential digital devices, including smartphones, tablets, and laptops, fostering digital inclusion and participation in the digital economy.

    “Energy Solutions (Generators & Solar Panels): S.C.A.L.E. will empower homes and small businesses with affordable, sustainable energy solutions, such as solar panels and efficient generators, addressing Nigeria’s energy challenges.

    “General Merchandise (Healthcare, Apparel & Textiles, Food & Beverage): S.C.A.L.E. will enhance access to essential healthcare products, quality apparel, and nutrition, while advancing growth in those sectors.

    “By addressing diverse thematic areas via S.C.A.L.E., CREDICORP ensures a broad and meaningful impact, creating opportunities for local industries to expand while improving the quality of life for millions of Nigerians.

    “The public has followed CREDICORP’s journey from what was a series of ideas of Mr. President, to now several Participating Financial Institutions, to about 30,000 civil servants receiving consumer credit for life-enhancing goods and services, and our ongoing expansion to the public.

    “We are driving towards a product-led approach to credit-where we enable and tailor consumer credit for specific themes of impact on our beneficiaries, while also heavily incentivizing and driving consumption of locally produced goods and services along those themes.

  • CREDICORP as new dawn for Civil Servants

    CREDICORP as new dawn for Civil Servants

    • By Jill Okeke

    When news filtered in August that the federal government had commenced its credit scheme with civil servants, a wave of cautious optimism swept through government offices across Nigeria. For decades, civil servants, the backbone of Nigeria’s public sector, have grappled with financial constraints that often seemed insurmountable. The launch of the Nigerian Consumer Credit Corporation (CREDICORP) marks a potential turning point in their financial lives, promising to reshape the economic landscape for millions of hardworking Nigerians.

    The inclusion of civil servants as the initial beneficiaries of this initiative is both strategic and symbolic. Civil servants, with their stable employment and regular income, represent an ideal starting point for expanding consumer credit access. Yet, despite their steady salaries, many have long struggled with limited access to affordable credit, often resorting to high-interest loans or informal borrowing networks to meet urgent financial needs.

    CREDICORP, spearheaded by Uzoma Nwagba, its Managing Director and CEO, under the visionary leadership of President Bola Ahmed Tinubu has begun to change this narrative dramatically. By prioritizing civil servants in its pilot program, CREDICORP is not just offering a financial product; it’s extending a lifeline that could potentially transform the economic realities of a significant segment of Nigeria’s workforce.

    For the average civil servant, CREDICORP represents more than just access to credit; it symbolizes a recognition of their economic potential and a pathway to financial empowerment. The initiative’s promise of up to 50% reduction in interest rates is particularly significant. In a country where double-digit interest rates have been the norm, this reduction could mean the difference between financial suffocation and breathing room for many civil servants.

    Consider the case of Adebayo, a mid-level civil servant in Lagos. For years, he has dreamed of investing in solar panels to reduce his family’s reliance on expensive and unreliable grid electricity. However, the high upfront costs and prohibitive interest rates on personal loans have kept this dream out of reach. With CREDICORP’s targeted loans for solar panels and other energy solutions, Adebayo and countless others like him now have a realistic path to energy independence and long-term savings.

    Similarly, for Amina, a teacher in Kaduna, the prospect of accessing affordable credit to cover her children’s school fees or invest in her small side business could be life-changing. The financial stability and peace of mind that comes with knowing she has access to responsible credit options cannot be overstated.

     On August 26, CREDICORP disclosed that so far a total of N3.5 billion has been disbursed to beneficiaries through financial institutions participating in its consumer credit scheme.

    The corporation noted that a total of 10, 942 beneficiaries received the amount in just five days of the scheme. 

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    The beneficiaries, according to the organization include 4,786 federal and state teachers, 2,831 administrators from federal and state Ministries, Department and Agencies, (MDAs), 1,307 government medical doctors, 1,264 workers of Police and paramilitary institutions, and 753 judicial workers.

     Beyond a policy initiative, the introduction of CREDICORP represents a fundamental shift in Nigeria’s approach to financial inclusion and economic empowerment. Under the pilot program of CREDICORP, five trusted financial institutions so far — FCMB’s Credit Direct (focused on civil servants), Wema Bank, Accion MFB, Letshego MFB, and Abbey Mortgage Bank — now offer consumer credit to help Nigerians tackle the growing financial pressure caused by rising costs of petrol and energy. Through this pilot, every day Nigerians start gaining access to cheaper credit (up to 50% reduction in rates) to meet urgent household expenses, access cheaper energy solutions, and invest in their future.

    What’s particularly encouraging about the pilot program is its focus on addressing immediate needs while also laying the groundwork for long-term financial empowerment. The inclusion of loans specifically for solar panels, compressed natural gas (CNG), and electric vehicles reflects a forward-thinking approach that aligns consumer credit with broader national goals of energy efficiency and environmental sustainability.

    The early testimonials from the rollout suggest that CREDICORP is already making a tangible difference in people’s lives. From helping parents cover unexpected medical expenses to enabling small business owners to invest in equipment, these early successes provide a glimpse of the transformative potential of widespread access to consumer credit.

    CREDICORP is bridging this gap by creating a structured and accessible consumer credit ecosystem. The initiative is built on three foundational pillars: infrastructure, capital, and cultural re-orientation. These pillars are designed to address the systemic issues that have long prevented the development of a thriving consumer credit market in Nigeria.

    Its infrastructure pillar is the ambitious goal of providing every economically active Nigerian citizen with a comprehensive credit score. This initiative recognizes that credit scores are more than just numbers—they are financial passports that can open doors to economic opportunities. Working in partnership with the Central Bank of Nigeria (CBN) and credit bureaus, CREDICORP is creating a robust credit profiling system that will serve as the foundation for responsible lending and borrowing.

    CREDICORP’s second pillar focuses on providing the necessary capital to fuel the expansion of consumer credit in Nigeria. It offers wholesale funding and credit guarantees to financial institutions, addressing one of the primary obstacles to credit expansion—the perceived risk associated with consumer lending.

    This approach is particularly innovative in its focus on supporting locally-manufactured products. The linkage between consumer credit and domestic production has the potential to create a virtuous cycle of economic growth, where increased consumer spending drives industrial expansion, which in turn creates more jobs and further increases demand for credit.

    Perhaps the most challenging and long-term aspect of CREDICORP’s mission is its focus on cultural re-orientation. This pillar recognizes that for consumer credit to truly take root, there needs to be a fundamental shift in attitudes towards borrowing and lending. On the consumer side, CREDICORP aims to promote responsible credit use as a pathway to a better quality of life.

    The focus on civil servants in CREDICORP’s rollout could serve as a catalyst for broader economic change in Nigeria. As government employees begin to experience the benefits of accessible credit, there could be increased pressure to expand these services to other sectors of the economy. The success stories emerging from the civil service could provide valuable data and insights to refine the program for wider implementation.

    Moreover, by improving the financial well-being of civil servants, CREDICORP could indirectly enhance the efficiency and effectiveness of the public sector. Financially stable employees are likely to be more productive and less susceptible to corruption, potentially leading to improved public service delivery across the board.

  • Accion MfB, CrediCorp plan credit scheme for 15,000 consumers

    Accion MfB, CrediCorp plan credit scheme for 15,000 consumers

    Accion Microfinance Bank (MfB) and CrediCorp have partnered to launch a consumer credit scheme nationwide. The scheme, which commences this month, will serve the interest of middle-income earners.

    The partnership seeks to provide accessible and affordable credit to over 15,000 middle-income earners, contributing to improved financial inclusion in Nigeria. With a focus on affordability, the partnership will offer competitive interest rates and a 2-year tenure, with quarterly interest payments.

    Managing Director/CEO of Accion Microfinance Bank, Taiwo Joda, expressed enthusiasm for the partnership, emphasising the bank’s commitment to meeting the evolving financial needs of consumers.

    During the collaboration discussion, he stated, “As one of the leading banks in the nation, we are keen about reaching out to consumers at this time, understanding their evolving needs, and providing innovative solutions to address them. We are particularly excited about the potential to finance basic appliances, school fees, and support the transition from kerosene to gas stoves, making a tangible difference in the lives of our customers.”

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    “We believe this partnership will have a significant impact on the lives of middle-income earners and small business owners,” said The Managing Director, CREDCORP, Engr Uzoma Nwagba. “We look forward to working together to make a difference.”

    Key outcomes from the collaboration are to reduce interest rates, whereby from September 2024, middle-income earners will have access to loans at reduced interest rates for a specific period.

    There is also the gain of flexible repayment plans as borrowers will benefit from personalised repayment schedules tailored to their distinct financial requirements.

    Also, with simplified application process and streamlined procedures will ensure swift access to funds, making it easier for middle-income earners to manage their financial needs.

    The launch of nationwide consumer credit scheme marks a significant milestone for both Accion Microfinance Bank and CrediCorp. The partnership is expected to have a positive impact and contribute to a financially inclusive Nigeria, offering citizens the opportunity to thrive.

    Accion Microfinance Bank has been in operation for over 16 years and is a pioneer in Nigeria’s microfinance sector, providing innovative financial solutions. The bank’s long history of supporting entrepreneurs and small businesses has greatly contributed to economic growth and development.

    The bank has solid shareholder investments from three major banks – Ecobank, Zenith Bank and Citi Bank – as well as International Finance Corporation, a World Bank member, and Accion Investments, all of which contribute to its strong financial base and allow it to serve an ever-increasing number of customers.

  • Expert lauds Fed Govt’s CREDICORP, cautions on implementation 

    Expert lauds Fed Govt’s CREDICORP, cautions on implementation 

    A Professor of Strategy and Development at the Commonwealth Institute of Advanced and Professional Studies, Anthony Kila, has commended the federal government’s Nigerian Consumer Credit Corporation (CREDICORP) initiative while advocating for a cautious approach to its implementation. 

    His remarks came during his address at the Cambridge African Round Table (CARt), an international forum that gathers global analysts, leaders, diplomats, and scholars to discuss African and global affairs.

    Speaking at the event organised to discuss economic and developmental opportunities in African and Caribbean countries, themed “Finance, Production, and the Market in African Countries,” the renowned political economist and public affairs analyst acknowledged the significance of CREDICORP as a government-owned development finance institution (DFI) aimed at boosting access to consumer credit in Nigeria. 

    According to Kila, this initiative holds immense potential for catalyzing economic growth, especially in promoting local products and services.

    “I am impressed with the Nigerian Consumer Credit Corporation (CREDICORP) concept and, in principle, I endorse it,” he said. 

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    “However, we must approach this project with caution to ensure it does not devolve into a mere cash-sharing scheme.”

    He further emphasised that the initiative should serve as a platform to drive economic empowerment in Nigeria. 

    “The CREDICORP scheme should be perceived as an opportunity to invigorate and empower ‘Made in Nigeria’ products and services, which in turn can lead to job creation and wealth generation within the country. 

    “Anything short of this would be a waste of a good idea,” Kila advised.

    While commending the initiative, Kila stressed the importance of transparency and accountability in its implementation, noting that public vigilance is crucial to prevent the scheme’s misuse.

    In his closing remarks, the professor extended a broader call to political economists in African and Caribbean nations, urging them to play an active role in guiding governments, businesses, and the public toward economic prosperity. 

    “Collaboration between governments, investors, and innovators is key to unlocking the full potential of initiatives like CREDICORP,” Kila stated.