The Federal Government has launched a pension-backed loan scheme targeted at easing credit access for retirees and pensioners across the country. The program will be implemented through the Nigerian Consumer Credit Corporation (CREDICORP) in partnership with Leadway Trustees.
Pension-backed loans will be available to retirees starting at ₦50,000, with additional amounts based on the income from their respective pensions. Uzoma Nwagba, managing director of CREDICORP, stated that the program is intended to provide retirees with access to quick cash to help them with emergency medical bills, household repairs, small business assistance, or simply obligations to family.
The loans will have a low interest rate and will be secured by pension income. Nwagba, who spoke at the Abuja launch for the initiative, “Empowering Retirement with Consumer Credit”, confirmed that both federal and state pensioners could apply.
Many retirees in Nigeria are unable to access credit for a variety of reasons, including restrictive credit policies. The program would change that scenario by using pensions as collateral, and pensioners would be compensated with specific financial backing. Leadway Trustees, which manages pension funds’ investments, will work with the corporation to ensure transparency and accountability.
Chukwuemeka Okeke, a retiree activist, expressed his delight at the Abuja launch. Okeke stated that the loan scheme would allow him to meet his immediate needs, particularly medical expenses.
The government emphasized that the loan was intended to restore retirees’ dignity and financial independence without subjecting them to burdensome loan terms. However, stakeholders engaged at the event, suggested that the implementation success would depend on effective regulation and execution.
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