The federal government has commenced disbursement of consumer credit to economically active civil servants nationwide.
The government had announced the establishment of a Nigerian Consumer Credit Corporation (CREDICORP).
The federal government disclosed the development in a statement issued after the signing event between CREDICORP and Credit Direct, obtained by NewsNGR.
CREDICORP said the programme, which kicks off September, will be implemented through its growing list of participating financial institutions (PFIs). Applicants can access up to N3.5m, depending on their income and need.
According to the corporation, the first wave of institutions is Credit Direct and a subsidiary of the FCMB Group.
NewsNGR understands that the consumer credit offers discounted direct consumer credit to over 15,000 civil servants per round. However, the beneficiaries must be on the Integrated Payroll and Personnel Information System (IPPIS).
“Civil servants on IPPIS 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 initiative is part of a much broader effort to support the well-being of Nigerians, which aligns with CREDICORP’s mission to accelerate consumer credit access to 50 per cent of economically active Nigerians by 2030,” the statement said.
The Chief Executive Officer of CREDICORP, Uzoma Nwagba said, “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.”
The CEO of Credit Direct, Chukwuma Nwanze, said the firm is committed to providing civil servants with low interest credits.
Nwanze said, “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.”