More than one million Nigerians have applied for a cumulative N1.3 trillion loan from the Nigerian Consumer Credit Corporation (CreditCorp). This surge in applications highlights the immense interest in the Federal Government’s upcoming consumer credit scheme, a key campaign promise by President Bola Ahmed Tinubu. The program aims to provide soft loans to help Nigerians acquire essential properties without the burden of a lump sum payment.
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Massive Response to CreditCorp’s Consumer Credit Scheme
According to The Nation, no fewer than 500,000 Nigerians are expected to benefit from the scheme by the end of next year. The consumer credit scheme is designed to ease financial pressures on citizens by offering them accessible loans to improve their quality of life.
A recent CreditCorp survey revealed that within just one week, over one million Nigerians submitted Expressions of Interest (EOI) for consumer credit. The survey also served as an organic nationwide assessment of personal economic conditions and credit needs across the country.
Survey Findings: A Nation’s Demand for Credit
CreditCorp’s report indicates that the findings covered all 36 states and the Federal Capital Territory (FCT), encompassing approximately 723 local government areas. The data paints a picture of a populace eager for credit access. The corporation received 1,149,805 submissions, with the average loan request amounting to N1,115,088.
Interestingly, the survey revealed a gender disparity among applicants, with men accounting for 74 percent of total submissions. However, future rounds may present a more balanced gender representation. The average age of respondents was 33.5 years, with the 26-40 age group comprising the majority at 663,356 submissions.
Diverse Credit Needs Across the Population
The demand for consumer credit spans a wide range of needs. Small business loans top the list at 18 percent, followed by home purchases at 15 percent, vehicle acquisitions at 10 percent, and personal or household expenses at 16 percent. There is also significant demand for credit to cover school fees and investments, averaging 16 percent and 6 percent respectively.
CreditCorp noted that while credit needs do not vary widely across gender and age groups, some trends are evident. Women show a slightly higher demand for household expenses, while men prioritize home and vehicle purchases. Younger demographics, particularly students, exhibit a strong need for credit to cover educational expenses.
Civil servants demonstrate a particularly strong demand for home purchases, while students account for over 58 percent of credit requests for school fees. Entrepreneurs and skilled tradespeople, on the other hand, show a robust appetite for business-related credit.
Economic Implications and Average Income of Applicants
The average monthly income of respondents stands at N223,647.92, suggesting that the demand for credit is not solely driven by low-income individuals. Instead, there is a broad-based need for affordable financing options across various income levels.
CreditCorp’s Chief Executive Officer, Uzoma Nwagba, informed The Nation that the agency is in the final stages of planning for the program’s launch. The objective is to empower economically active Nigerians by providing them with credit for essential items that can improve their quality of life without requiring upfront payments.
Enabling Access to Essential Goods and Services
Nwagba explained, “With a consumer credit facility, if you have a modest income, you should be able to access a vehicle, solar panel, cell phone, laptop, education, house, and other things that improve the quality of your life, and you can pay for it over a prolonged period.”
The establishment of CreditCorp by the government aims to strengthen the nation’s credit infrastructure. It will provide financial guarantees to institutions traditionally hesitant to lend due to concerns about potential losses. This initiative is expected to significantly enhance access to credit and support the financial inclusion goals of the Federal Government.
In summary, the overwhelming response to CreditCorp’s consumer credit scheme underscores a significant demand for accessible financial solutions among Nigerians. As the program prepares for its imminent launch, it promises to offer much-needed financial relief and opportunities for improved living standards across the country