Abuja: Mr. Uzoma Nwagba, Managing Director of the Nigeria Consumer Credit Corporation (CREDICORP), emphasized the importance of the scheme in enhancing Nigerians' living standards and reducing corruption. Nwagba highlighted these points during a 'Meet the Press' event organized by the Presidential Media Team at the State House in Abuja.
According to News Agency of Nigeria, the CREDICORP initiative was launched less than a year ago and has already provided consumer credit to over 100,000 Nigerians, mainly civil servants. Nwagba explained that access to consumer credit for civil servants helps alleviate the pressure to engage in corrupt practices by meeting their basic needs. This initiative aims to offer dignified economic alternatives rather than just financing.
Nwagba further elaborated that CREDICORP's mandate includes improving the quality of life and bolstering local industries by facilitating consumer credit access for Nigerians to purchase locally made goods. He stated that responsible credit access reduces financial pressures that might lead to corruption while simultaneously boosting demand for Nigerian products and creating jobs.
Plans are underway to launch a nationwide consumer credit program targeting 400,000 young Nigerians through the YouthCred scheme, starting with National Youth Service Corps (NYSC) members. Nwagba emphasized the importance of strict repayment mechanisms, aligning with global best practices, to ensure the program's sustainability. He warned that defaulters might face restrictions such as difficulties in renewing passports or obtaining driver's licenses.
To build a reliable credit infrastructure, the Federal Government is working on linking individual credit scores to the National Identification Number (NIN), ensuring all financial institutions report loan performance for accurate and traceable credit scores.
Mrs. Olanike Kolawole, Executive Director of Operations at CREDICORP, confirmed that the youth credit initiative will target individuals aged 18 to 35. This program involves collaboration with banks, technology firms, and youth-focused organizations, aiming to foster financial confidence and economic inclusion.
The agency estimates that Nigeria requires about N183 trillion naira in credit for broad-based development, highlighting the necessity for financial institutions' participation to provide sustainable consumer credit. With adequate infrastructure, lenders will gain confidence, leading to improved credit access for Nigerians.
The News Agency of Nigeria reports that CREDICORP is a Federal Government-backed Development Finance Institution (DFI) dedicated to democratizing consumer credit access for Nigeria's working population. It operates as Nigeria's first fully paperless government agency, with a small team and AI-powered digital systems.