Did you know that 151 financial institutions have indicated interest to participate in the credit scheme of the federal government's established Nigerian Consumer Credit Corporation (CREDICORP)?

The Nigerian Consumer Credit Corporation, also known as CREDICORP, is a Development Finance Institution (DFI) of the Federal Government of Nigeria established with the mandate to democratise access to consumer credit for Nigeria’s working population. It aims to accelerate consumer credit access to 50 per cent of working Nigerians by 2030.

CREDICORP, established to expand consumer credit access across the country in order to make consumer credit easy to get for hardworking Nigerians, has attracted interest from 151 financial institutions eager to participate in its initiative.

In order to achieve its mandate, three of its established pillars include firstly, the strengthening of Nigeria’s consumer credit infrastructure, also ensuring every economically active citizen has a comprehensive credit score. This score becomes personal equity they build, facilitating access to consumer credit. Secondly, CREDICORP provides wholesale funding and credit guarantees to Financial Institutions committed to expanding consumer credit access today. Thirdly, a Cultural Re-orientation of the public (on responsible consumer credit as a pathway to a higher quality of life) and institutions (on effective consumer credit underwriting as a path to growth).

On that basis, the scheme is designed to improve Nigeria’s credit reporting systems so every hardworking citizen has a reliable credit score, provide credit guarantees and wholesale lending to banks and other financial institutions, and promote responsible consumer credit to improve quality of life and encourage financial responsibility.

Over the months, a variety of financial institutions, including commercial banks, microfinance banks, fintech companies, mortgage banks, and cooperatives, have completed the detailed Expression Of Interest (EOI) process. Of these institutions, 85 are licensed by the Central Bank of Nigeria (CBN) and collectively serve over 1.5 million consumer credit customers. CREDICORP will review and shortlist qualified institutions for the pilot phase of the scheme.

CREDICORP is partnering with the National Identity Management Commission (NIMC) to effectively link the National Identity Numbers (NIN) of Nigerians to a credit-scoring system. 

The high level of interest from financial institutions underscores the strategic vision and potential benefits of targeted consumer credit under the President Bola Tinubu’s Renewed Hope Agenda. However, the first phase of the scheme is open only to civil servants. Other beneficiaries from the public are expected to emerge in the next rollout phase with about 500,000 expected to have been covered by May 2025, according to The Punch in its editorial published on July 12, 2024.

SOURCES: The Punch | Credicorp

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