Economy: Nigeria offers N2m interest-free credit to support consumers, SME growth

*The Nigerian Consumer Credit Corporation unveils a fresh initiative designed to ease off financial pressure, improve livelihoods of millions of Nigerian consumers, and stimulate the national economy

Isola Moses | ConsumerConnect

The Federal Government of Nigeria has activated a landmark Consumer Credit scheme, offering up to N2 million in an interest-free facility to help consumers to afford essential needs without upfront payments for them to “Live Better, Now!” Says the Nigerian Consumer Credit Corporation.

ConsumerConnect reports the Nigerian Consumer Credit Corporation (CREDICORP) disclosed this fresh initiative is designed to ease off financial pressure, improve livelihoods of millions of Nigerians, and stimulate the national economy.

It is noted that instead of handing out direct loans, CREDICORP will act as a wholesale financier and risk-sharer, working with banks, Financial Technology (FinTechs) companies, cooperatives, and Microfinance (MFB) institutions to offer structured consumer credit for items, such as school fees, rent, digital devices, and household appliances.

CREDICORP said the objective of the scheme is to help citizens pay for vital expenses in manageable monthly instalments, all without interest.

Initiative creates credit ecosystem for Nigerians for decent living, says Engr. Nwagba, MD/CEO

Speaking on the initiative, Engr. Uzoma Nwagba, Managing Director and Chief Executive Officer (CEO) of the Nigerian Consumer Credit Corporation (CREDICORP), reportedly explained that the initiative is not about traditional borrowing.

According to him, it is about creating a credit ecosystem that empowers Nigerians to live decently without needing to save for years or fall into exploitative financial arrangements.

CREDICORP also said this shift aims to normalise access to Consumer Credit, which remains underdeveloped in the country.

It further explained the broader vision is to reduce the burden of living costs, curb the incentive for corruption, and drive demand for Nigerian-made goods.

The Corporation noted President Bola Ahmed Tinubu is backing the scheme strongly, convinced that improved access to credit is key to raising living standards, a report stated.

CREDICORP stated: “Nigerians shouldn’t live below their potential simply because they lack structured credit access.”

Phase one of the rollout targets Federal Civil Servants, and already over 1.6 million people have expressed interest since applications opened April 2025.

It was gathered that with Nigeria’s large population, however, public funding alone is insufficient.

To bridge the gap, CREDICORP will supply wholesale capital and credit guarantees to financial institutions through a National Credit Guarantee Company developed with the Bank of Industry (BoI), and other partners.

It is explained that one of the biggest barriers to credit in Nigeria is a lack of reliable credit data.

The Corporation further disclosed it would collaborate with the Central Bank of Nigeria (CBN), and credit bureaus to create a centralised system linked to citizens’ National Identification Numbers (NINs).

This is to allow for more accurate credit assessments and responsible lending in the ecosystem in Nigeria.

Besides, the new scheme strongly supports local industry through its SCALE initiative—Securing Consumer Access to Local Enterprise, CREDICORP stated.

Focus on promoting made in Nigeria products

It aims to channel credit towards Nigerian-made goods, from vehicles and tricycles to solar kits and furniture.

In achieving this, CREDICORP in a major breakthrough, was said to have secured an agreement with local vehicle makers and the Nigerian Automotive Design and Development Council (NADDC) late 2024, to provide consumers with access to locally assembled vehicles at a single-digit 9 percent interest rate—far lower than the 35–40 percent typical of personal loans.

Solar manufacturers are also being encouraged to deepen local production, with better credit terms offered to those using higher local content.

According to CREDICORP, this approach not only supports industry but creates jobs and builds a more self-reliant economy.

CREDICORP has partnered with Accum Microfinance Bank and TVS, Nigeria’s largest tricycle manufacturer, to offer drivers a pathway to vehicle ownership through interest-free payments, moving them away from exploitative hire-purchase models.

This initiative marks a fundamental shift in how Nigerians access and use credit, according to report.

By building a supportive infrastructure and fostering public-private collaboration, the government hopes to embed a responsible, inclusive credit culture—one that offers dignity, opportunity, and long-term stability for millions.

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