Nigeria unveils Interest-Free Consumer Credit Initiative

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The Federal Government has launched a groundbreaking initiative to provide Nigerians with interest-free consumer credit of up to N2 million, according to Uzoma Nwagba, Managing Director of the Consumer Credit Corporation of Nigeria (Credicorp). The initiative, backed by Credicorp, aims to ease the financial burden on Nigerians by offering an affordable way to purchase essential goods and services.

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“The idea is that rather than you paying out of pocket to buy a N2 million car or laptop, you can now pay N100,000 monthly for 20 months — and that is what we mean by consumer credit,” Mr. Nwagba explained. Credicorp will not lend directly to individuals but will provide a “backstop” to financial institutions, including banks, fintechs, and cooperatives, to make consumer credit more accessible.

“We don’t lend to people directly, but we make the system work,” Mr. Nwagba said. The agency’s goal is to grow consumer credit into a major part of Nigeria’s financial system, building an ecosystem where every Nigerian can access credit and pay later with dignity. “It’s a big deal,” he emphasized.

The program has three core objectives: improving the quality of life for Nigerians, reducing incentives for corruption, and catalyzing demand for locally made goods and services. According to Mr. Nwagba, President Bola Tinubu is focused on the long-term economic and social impact of the initiative. “The idea that you have to save money, cash and carry, to buy things you need is a very outdated idea,” he said.

By providing interest-free consumer credit, the government aims to stimulate economic growth, increase access to essential goods and services, and improve the overall well-being of Nigerians. With Credicorp’s innovative approach, Nigerians can now access the goods and services they need, paying in installments over time.

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