Nigerian Government Launches Loan Program to Ease Fuel Price Hike Impact
In a move to provide financial relief to Nigerians struggling with the impact of recent fuel price hikes, the Federal Government has launched a new loan program through the Nigerian Consumer Credit Corporation. The loan program, offered through participating financial institutions, aims to help households meet urgent needs and ease the burden on their budgets.
CREDICORP, a Development Finance Institution (DFI), was established to democratize access to consumer credit for Nigeria’s working population. The loans are being offered to help individuals and families cope with the rising cost of living and provide much-needed support during these challenging times.
Initially, civil servants are the primary beneficiaries of the program, with over 10,942 civil servants across various sectors already benefiting from the initiative. These include 4,786 education workers, 1,307 healthcare professionals, 753 specialized workers, 1,264 police and paramilitary officers, and 2,831 administrators. However, the program is expected to expand to the general public soon.
One beneficiary, Mrs. Hauwa Bawa from the Ministry of Labour and Productivity, shared her positive experience with the loan program. "I got my loan without knowing anyone," she said. "I applied online, and the funds were disbursed promptly. It helped me take care of my small farm and some serious household needs. I can’t thank CREDICORP and President Bola Ahmed Tinubu enough."
The loan program comes at a critical time as Nigerians struggle with soaring fuel costs. In September 2024, the Nigerian National Petroleum Corporation raised fuel prices from N568 to N897 per litre, with some stations charging as much as N1,000. This has led to a surge in the cost of basic commodities, exacerbating the already high inflation rate, which now stands at 34.19%.
CREDICORP’s mandate focuses on three key pillars: infrastructure to strengthen Nigeria’s consumer credit system and ensure that all economically active citizens have a comprehensive credit score; capital to provide funding and credit guarantees to financial institutions that expand consumer credit access; and cultural re-orientation to educate the public on responsible credit usage and encourage institutions to improve consumer credit underwriting.
President Tinubu’s administration remains committed to offering timely relief to Nigerians through this initiative. "Our goal is to support the population in weathering the current economic storm," the President’s office said in a statement.
Nigerians interested in applying for the loan can do so by visiting the CREDICORP website at www.credicorp.ng.