The Nigerian government has introduced a pension-backed loan initiative through the Nigerian Consumer Credit Corporation, CREDICORP, to support and empower retirees. This scheme provides retirees and pensioners with access to loans, ranging from N50,000, with the maximum amount determined by their pension income.

According to Uzoma Nwagba, Managing Director of CREDICORP, the programme aims to eliminate the exclusion of senior citizens from access to consumer credit. The initiative, launched under the theme “Empowering Retirement with Consumer Credit”, is designed for both federal and state pensioners. Nwagba emphasized that retirees, after years of dedicated service, deserve access to affordable financing for essential needs such as healthcare, small businesses, and home improvements.

The pension-backed loan programme offers tailored, low-interest loans that are secure and sustainable, leveraging pension income. This initiative ensures that Nigeria’s seniors can access credit with dignity, without the burden of exorbitant rates or complex processes. By partnering with Leadway Trustees’ expertise in pension management, CREDICORP is delivering a credit solution that is safe, affordable, and transparent.

One beneficiary of the scheme, Chukwuemeka Okeke, a retired civil servant, attested to the benefits of the programme, stating that it has enabled him to cover his healthcare needs without stress. The process, he noted, was straightforward, and he feels respected as a retiree.

The introduction of pension-backed loans for retirees and pensioners marks a significant development in Nigeria’s efforts to promote financial inclusion and support its senior citizens. This initiative reflects the government’s commitment to addressing the financial needs of retirees and empowering them to maintain their standard of living after retirement. With this programme, Nigeria’s retirees can now access credit facilities that are tailored to their needs, providing them with greater financial security and independence.