President Bola Tinubu announced that over 67,000 Nigerians have benefited from the Consumer Credit Scheme, accessing N47 billion in credit. The scheme, launched in July 2023, aims to democratize access to consumer credit, expand economic opportunities, and empower Nigerians. Tinubu revealed the development on his Twitter handle as the country prepares for the 66th Independence Day celebration. The National Credit Guarantee Company (NCGC) has issued N21.59 billion in guarantees, enabling participating lenders to extend N46.95 billion in loans.
The Consumer Credit Scheme has supported 67,512 beneficiaries across 25 states and the Federal Capital Territory (FCT). Notably, 11,374 beneficiaries are women, and 33.5% are first-time formal borrowers. Tinubu emphasized that the scheme has helped over 22,000 Nigerians gain entry into the formal credit system, enabling them to build a credit record. Successful repayment strengthens this record, making future loans easier to secure. The President highlighted the significance of the scheme in fulfilling his campaign promises.
The Nigerian Consumer Credit Corporation (CREDICORP), in partnership with the Federal Ministry of Communications, Innovation and Digital Economy, launched the scheme to provide access to consumer credit. Tinubu's administration aims to move Nigeria towards a credit-based economy, establishing a loan guarantee scheme to help small businesses overcome financing barriers. The President emphasized that access to credit enables workers to purchase essential items and pay over time, while small businesses can invest and repay loans based on future income.
The NCGC has collaborated with 19 financial institutions, including 13 commercial banks, three microfinance banks, and three development finance institutions. By taking on part of the lending risk, NCGC gives financial institutions greater confidence to lend to businesses and borrowers they might otherwise reject. Tinubu noted that despite some challenges, the NCGC has made a positive impact. The scheme has supported 661,291 direct and indirect jobs, according to NCGC estimates.
Tinubu stressed the importance of a viable credit system for businesses to thrive in Nigeria. He argued that credit enables people to invest, create jobs, and stimulate economic growth. The President cited examples of how credit can benefit individuals and businesses, such as traders restocking before the festive season or manufacturers taking bigger orders and buying new machinery.
The President hailed the economic reforms under his administration, stating that the Consumer Credit Scheme gives credibility to growth. He emphasized that the federal government will continue to expand the scheme, making opportunities created by reforms accessible to homes and businesses across Nigeria. Tinubu expressed satisfaction that tens of thousands of Nigerians who previously lacked access to formal credit are now borrowing to grow.
Tinubu concluded by reiterating his commitment to fulfilling campaign promises and moving Nigeria towards a credit-based economy. He expressed optimism that the scheme will continue to create opportunities for Nigerians, ultimately improving their quality of life. The President's administration aims to sustain and expand the scheme, ensuring that its benefits reach every part of Nigeria.
Key points
- Over 67,000 Nigerians have accessed N47 billion in credit under the Consumer Credit Scheme.
- The scheme has supported 661,291 direct and indirect jobs.
- 33.5% of beneficiaries are first-time formal borrowers.
