The Nigerian Consumer Credit Corporation (CREDICORP) has introduced a groundbreaking pension-backed loan program aimed at providing retirees with accessible and affordable credit, marking a significant milestone in Nigeria’s consumer finance landscape.
Launched on Thursday in Abuja under the theme ‘Empowering Retirement with Consumer Credit,’ this initiative is a collaborative effort with Leadway Trustees and Optimus Bank. It is designed to offer senior citizens customized, low-interest loans secured against their pension income.
Historically, retirees in Nigeria have faced challenges in obtaining consumer credit, limiting their ability to finance essential needs such as medical expenses, home repairs, entrepreneurial activities, and family support. This new program seeks to integrate pensioners into the credit market, addressing this longstanding gap.
At the signing of a Memorandum of Understanding (MoU), CREDICORP’s Managing Director and CEO, Engr. Uzoma Nwagba, highlighted the program as an innovative product that will transform how consumer credit is accessed by Nigeria’s elderly population.
He stated, “By utilizing pension income as collateral, this initiative offers retirees personalized, low-interest loans that are both secure and sustainable. This pioneering product enables Nigerian seniors to obtain credit with dignity, free from excessive interest rates and complicated procedures.”
Nwagba emphasized the critical role retirees play in Nigeria’s development, noting, “Pensioners have long been overlooked in the credit system. This program shifts that perspective. Through our partnership with Leadway Trustees, experts in pension management, we are delivering a credit solution that is safe, affordable, and transparent. This is a new era of consumer credit-one that is inclusive, fair, and empowering.”
He also praised President Bola Tinubu for championing financial inclusion via the Renewed Hope Agenda, underscoring that the pension-backed loan scheme aligns with the government’s dedication to expanding opportunities for all Nigerians.
“After years of committed service, retirees deserve access to affordable financing options for healthcare, small enterprises, home upgrades, and family obligations,” Nwagba added.
Covering both federal and state pensioners, this program is poised to enhance financial accessibility for senior citizens and alleviate the financial pressures associated with retirement life in Nigeria.
