The Federal Government of Nigeria has launched a landmark pension-backed consumer credit scheme designed to extend affordable loans and credit facilities to retirees and middle-class Nigerians.
The initiative, introduced under President Bola Ahmed Tinubu’s Renewed Hope Agenda, is aimed at deepening financial inclusion and supporting vulnerable groups who have historically been excluded from the nation’s credit system.
The programme was formally unveiled during the signing of a Memorandum of Understanding (MoU) with financial partners, led by the Nigeria Consumer Credit Corporation (CREDICORP).
Speaking at the launch, the Managing Director and Chief Executive Officer of CREDICORP, Engr. Uzoma Nwagba, described the scheme as a “turning point” in Nigeria’s consumer credit landscape.
“For decades, annuitants have been sidelined in the credit ecosystem despite their immense contribution to Nigeria. This programme changes that narrative by introducing safe, transparent, and affordable credit options secured by pension income,” Nwagba said.
Key Features of the Pension-Backed Credit Scheme
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Eligibility: Retirees (annuitants) and middle-class Nigerians.
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Loan Range: From ₦50,000 upward, with maximum limits tied to pension income.
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Repayment: Deductions structured around monthly pension payments.
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Purpose: To fund healthcare, small businesses, home improvements, and family support.
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Goal: Reach 100 million Nigerians as part of Tinubu’s financial inclusion strategy.
Beneficiaries Share Their Experiences
Early beneficiaries expressed optimism about the scheme’s impact.
Mrs. Amina Sule, a 68-year-old retired teacher, said the programme offered her renewed confidence:
“I’ve always wanted to start a small poultry business. With this pension-backed loan, I can do so without worrying about high interest rates. This is more than credit—it’s dignity and independence.”
Mr. Chukwuemeka Okeke, a retired civil servant, explained how the scheme has eased his financial burden:
“Medical expenses can be overwhelming. This loan helps me cover bills without stress. The process was straightforward, and I feel valued as a retiree.”
Financial Institutions Back the Initiative
Partner banks and trustees welcomed the scheme, noting that it bridges a long-standing gap in the Nigerian credit system. By securing loans against pension income, retirees gain access to funds without the risks associated with traditional lending.
Engr. Nwagba reaffirmed that the scheme aligns with CREDICORP’s mission to expand consumer credit across Nigeria.
“This initiative sets a new standard for inclusivity and equity in Nigeria’s financial system. It empowers retirees while strengthening the economy,” he added.
FAQs on FG’s Pension-Backed Consumer Credit Scheme
1. Who can apply for the pension-backed loan?
The scheme is open to retirees (annuitants) and middle-class Nigerians with pension income.
2. What is the minimum and maximum loan amount?
Loans start at ₦50,000, with maximum limits tied to each applicant’s pension earnings.
3. How will repayments be handled?
Repayments will be automatically deducted from monthly pension payments.
4. What are the interest rates like?
The loans come with low, affordable interest rates designed to ease financial pressure on retirees.
5. How many people are expected to benefit?
The programme targets up to 100 million Nigerians over time.