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What you need to know as Tinubu approves first takeoff of consumer credit scheme

The Bola Tinubu-led administration recently approved the commencement of the first phase of the Consumer Credit Scheme.

Nigeria-Consumer-Credit-Scheme. Credit: Nairametrics
Nigeria-Consumer-Credit-Scheme. Credit: Nairametrics

The Bola Tinubu-led administration recently approved the commencement of the first phase of the Consumer Credit Scheme.

In a statement released on Wednesday by the government described Consumer credit 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 is simply a system that facilitates crucial purchases, such as homes, vehicles, education and healthcare, essential for ongoing stability to pursue their aspirations.

Ahead of the take-off, the President approved the appointment of Engineer Uzoma Nwagba as the Managing Director/Chief Executive Officer of the Nigerian Consumer Credit Corporation (CREDICORP).

Engineer Nwagba, a 36-year-old, holds a master’s of business administration from the Harvard Business School and a first-class Bachelor’s of Engineering from Howard University, Washington DC. Before his appointment, Engineer Nwagba served as Chief Operating Officer of the Bank of Industry, in charge of driving micro-credit and other financial interventions at the institution.

As the first phase takes off, below are the important six key facts you should know about this new credit scheme.

1. How will the scheme work?

The scheme is a loan. It will require every working Nigerian through responsible repayment will build credit histories, “unlocking more opportunities for a better life” through the scheme.

2. It is meant for working Nigerians

The Consumer Credit Scheme put together by CrediCorp, has been initiated in line with the company’s mandate to accelerate consumer credit access to 50% of working Nigerians by 2030. For a robust implementation, CrediCorp will fix the structural barriers to accessing consumer credit in Nigeria, and catalyze the market with capital, guarantees, and policy. According to the statement by Ajuri Ngelale, the president’s spokesperson, President Tinubu believes every hardworking Nigerian should have access to social mobility, with consumer credit playing a pivotal role in achieving this vision.

3. What is the application process for obtaining this loan?

The Nigerian Consumer Credit Corporation (CREDICORP) has launched a portal for interested Nigerians to apply for consumer credit.

Working Nigerians interested in receiving consumer credit can now visit www.credicorp.ng to express interest.

4. How the loans will be made available to Nigerians?

 The Federal Government of Nigeria established the Nigerian Consumer Credit Corporation (CrediCorp) as a company, including its consumer credit guarantee fund. It works closely with the Central Bank of Nigeria (CBN), the financial sector, identity management, credit registries, fintechs, consumer protection, and policymakers to fulfil its mission of making consumer loans available to qualified Nigerians. 

5. Will the scheme be in phases

According to the federal government, the scheme will be rolled out in phases, starting with members of the civil service and later extended to members of the public.

6. Do I need to pay for the application?

According to CrediCorp, no application fee is required for interested Nigerians.

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