Nigeria’s consumer credit scheme, explained
Consumer Credit Scheme is an intervention program of the Nigerian federal government aimed at accelerating consumer credit access to 50% of working Nigerians by 2030.
This scheme will be managed by a company called the Nigeria Consumer Credit Corporation (CrediCorp), which is owned by the federal government.
Ajuri Ngelale, the spokesperson for President Bola Tinubu, said in a statement that people, especially the working class, will be able to access this loan for important things like buying a house, a car, paying school fees, accessing better healthcare, and then they can repay gradually.
“The President believes that every hardworking Nigerian should have access to social mobility, and consumer credit will play a significant role in achieving this vision,” Ngelale said.
This is the second loan scheme that the Tinubu administration has initiated, following the Students Loan Scheme launched shortly after taking office. These initiatives are part of the programs and policies promised by the Nigerian President to alleviate the hardships caused by the removal of fuel subsidies in the country.
That action led to a significant increase in the prices of goods and services, driving the inflation rate to a record 33.7% as of March 2024.
How to register for the consumer credit scheme
To register for the scheme, individuals can visit the website credicorp.ng. The registration process involves five stages:
- The first stage requires filling in basic personal details like name, phone number, gender, state of origin, date of birth, and National Identity Number (NIN).
- In the second phase, the applicant specifies why they need the credit, whether it’s for purchasing a house, a vehicle, home appliances, or to pay off existing debts.
- After that, the applicant enters their source of livelihood, including their occupation, monthly salary, bank details for salary payments, etc. They also specify the amount they want to borrow and can comfortably repay within six months.
- The fourth stage involves answering questions about any secondary employment or side hustle, as well as whether they have borrowed money from a bank before or currently owe any bank.
- In the final stage, the applicant must take a picture of themselves using the device’s camera while doing the application. Only current pictures are accepted; there is no provision for uploading old pictures.
It’s not clear how long one has to wait before the credit is approved, though a pictogram on the CrediCorp website indicates that phase one of the scheme will commence in May 2024.
Additionally, the website does not specify whether the credit facility comes with any interest or what the interest rate will be.
However, registering for the scheme and applying for a credit facility are not the same.
According to CrediCorp, “the portal to apply for consumer credit and receive it through our partner financial institutions will open shortly.”
The registration process simply indicates interest in applying for the loan when it becomes available. Only those who indicate interest can apply, and the deadline to register is May 15, 2024.
Who is eligible?
Phase 1 of the scheme will begin with people working for federal and state civil services, as well as “white-collar workers and informal workers with trackable cash flows”.
The estimated number of people in this category is 31.87 million, according to CrediCorp figures.
This first phase will run from May to December 2024, before the second phase involving the “general public” begins.
