President Bola Tinubu recently approved the launch of the first phase of the Consumer Credit Scheme in Nigeria, a programme designed to offer credit facilities to working citizens in the country.
Here are seven key aspects you should know about this initiative:
1. Initiative Overview:
The Nigeria Consumer Credit Corporation (CREDICORP) has introduced a portal where Nigerians can indicate their interest in obtaining consumer credit. CREDICORP, a federally-owned entity, aims to boost consumer credit availability to 50% of Nigeria’s working population by 2030.
2. Presidential Directive:
Following the President’s directive to enhance access to consumer credit for Nigerians, the launch of this initiative was announced in a statement by the President’s special adviser on media and publicity, Ajuri Ngelale.
3. Phased Implementation:
The initiative will be implemented in stages, starting with Federal civil service employees and then extending to the general public. The first phase, commencing in May 2024, targets Federal civil servants, state civil servants, white-collar workers, and informal workers (gig economy) with traceable cash flows. The second phase is scheduled for May 2025, focusing on the general public.
4. Objective:
The scheme aims to grant access to consumer credit for all eligible Nigerians, catalyzing the entire industry. It also focuses on unifying, standardizing, and democratizing credit registry and credit scores in Nigeria, with the National Identification Number (NIN) as the singular identifier.
5. Structural Impediments:
Addressing structural impediments to consumer credit in Nigeria, the initiative energizes the market through capital infusion. It removes structural, market, and policy barriers to accelerate access to consumer credit to 50% of all working Nigerians by 2030.
6. Credit Guarantee:
The scheme provides credit guarantees to financial institutions to accelerate people-centered credit products. Additionally, it incentivizes the purchase of locally-manufactured goods and services, contributing to economic growth and development.
7. Collaboration:
CREDICORP collaborates with various stakeholders, including the Central Bank of Nigeria, financial institutions, identity management services, credit registries, fintech companies, consumer protection agencies, and policymakers, to fulfill its mission of expanding access to consumer credit.
Application Details:
The application portal for the Consumer Credit Scheme will open shortly, facilitating the process for interested individuals to apply for consumer credit.
In conclusion, the Consumer Credit Scheme in Nigeria represents a significant step towards enhancing financial inclusion and empowering Nigerians economically.
By addressing structural barriers and leveraging collaboration, this initiative aims to transform the consumer credit landscape in the country, fostering economic growth and prosperity.
Stay tuned for updates on the application portal and take advantage of this opportunity to access consumer credit tailored to your needs.