The Nigerian Consumer Credit Corporation (CREDICORP), a government-owned development finance institution (DFI) committed to enhancing consumer credit access, has commenced the disbursement of consumer credit through its growing list of participating financial institutions (PFIs) to economically active Nigerians nationwide.
In the development finance institution’s first wave of institutions is Credit Direct, Nigeria’s largest lender to civil servants nationwide, and a subsidiary of the FCMB Group.
At a signing of the kick off the credit disbursement initiative on Wednesday, CREDICORP announced the partnership with Credit Direct to accelerate mass access to consumer credit starting with civil servants across the country.
According to the DFI, effective from this month, it will be offering discounted direct consumer credit to over 15,000 civil servants per round.
It maintained that civil servants on IPPIS can now benefit from exclusive offers with reduced interest rates and flexible repayment plans for purchase of domestic goods, mobility, medical care, electronics and other household needs.
The DFI stated that the initiative was part of a much broader effort to support the well-being of Nigerians, which aligns with its mission to accelerate consumer credit access to 50% of economically active Nigerians by 2030.
Speaking at the event, the DFI’s Chief Executive Officer, Uzoma Nwagba, enthused: “We are excited to partner with Credit Direct to kick off President Tinubu’s consumer credit scheme with civil servants as Mr. President had promised.
“By going through Credit Direct today, and subsequently our other financial institutions coming on stream in the next days and weeks as we target 500,000 civil servants, they can access instant and affordable credit to cushion economic shocks or afford consumer goods to improve the quality of their lives. This is just the start of a long and exciting journey with many parts, and linkages that ultimately catalyse local industries as we expand consumption.”
In his remarks, CEO of Credit Direct, Chukwuma Nwanze, emphasized the importance of the partnership in fostering financial inclusion.
He explained: “Our civil servants are vital to the nation’s growth and stability, and we are committed to supporting them with accessible credit facilities. This partnership with CREDICORP allows us to extend our services to more individuals, ensuring that all civil servants can access the funds they need quickly and easily, up to N3.5 million depending on their income and need. Over the past 17 years, Credit Direct has positively impacted the lives of millions of customers across Nigeria. With a presence in all 36 states, including the Federal Capital Territory, through branches and digital channels, we continue to serve working-class Nigerians nationwide.”
Some of the key features of the credit offer are lowest interest rates, which effective from September 3, 2024, will enable civil servants to access wide range of loans of up to N3.5 million, depending on their income, and at lowest interest rates on the market.
Also, the credit offer allows for flexible repayment plans in form of customized repayment schedules designed to meet the unique needs of each borrower, and quick and easy application process that ensures fast access to funds, making it easier for civil servants to manage their financial needs.
