When CREDICORP disclosed that just about 3% of Nigeria’s working‑age population enjoys formal consumer credit, the numbers felt like a punch to the gut. In a media briefing on , Uzoma Nwagba, Managing Director and Chief Executive Officer, announced a bold plan: lift that figure to 50% by 2030. The announcement, backed by Chairman Otunba Aderemi Abdul and executives Olanike Kolawole and Aisha Abdullahi, puts the federal government’s newest development finance institution at the centre of Nigeria’s financial‑inclusion debate.
Why the 3% figure matters
Staggeringly, 94% of Nigerian adults – roughly 84 million people – were unable to secure a formal loan in 2023. Rigid collateral demands and proof of salaried employment slam the doors shut for most. The fallout? One‑third of adults turned to informal sources, borrowing from family, friends or unlicensed lenders. That informal market, while risky, holds a hidden potential: Stears Credit Market Mapping estimates it could swell the $2.1 billion consumer‑credit pool by 30%, adding about $621 million in value.
CREDICORP’s mandate and structure
Born out of a presidential edict in April 2024, CREDICORP is tasked with tearing down structural, market and policy barriers that choke credit flow to ordinary workers. Its charter reads like a road map: democratize credit, nurture a credit culture, and ultimately lift living standards. The corporation leans on five core values – meritocracy, commitment, efficiency, collaboration and innovation – to steer a team of seasoned professionals.
Current reach and the wholesale lending model
According to Nwagba, the institution is already channeling funds to between 120,000 and 130,000 Nigerians via wholesale lending. In practice, CREDICORP injects cheap capital into partner banks and micro‑finance outfits. Those institutions, in turn, can shoulder a bit more risk because the government‑backed funds act as a cushion. The net effect? lenders can push loan‑to‑value ratios higher, offer lower interest rates and reach borrowers who’d otherwise be deemed “high‑risk”. Nwagba reckons this approach could lift market coverage from today’s 3% to somewhere between 10% and 15% within the next couple of years.
Strategic partnerships and recent initiatives
A standout collaboration is with Credit Direct, which channels discounted loans to civil servants. Through USSD codes, WhatsApp, sales agents and branch networks, eligible employees can tap up to N5 million. The simplicity of dialing *5120# has turned a bureaucratic process into a near‑instant transaction for many.
- Loan cap: N5 million per civil servant
- Access channels: USSD, WhatsApp, physical branches
- Interest rates: 2‑3 points below market average
Another headline‑grabbing move was the rollout of a credit program for 400,000 cooperative members. Announced by President Bola Tinubu and executed with local cooperatives, the scheme couples financing with “credit orientation” – a series of workshops that teach borrowers how to build credit histories and understand scoring. Nwagba stresses that the goal isn’t just dollars on a balance sheet; it’s a cultural shift that could let Nigerians finance homes, cars or even rent on a monthly basis instead of lump‑sum payments.
Challenges in Nigeria’s credit market
Despite the optimism, several headwinds remain. First, many Nigerians lack a formal salary slip, which banks still use as a primary eligibility filter. Second, the informal sector’s sheer size means that even a 30% market expansion would require massive outreach and robust risk‑management frameworks. Third, digital‑only lenders like FairMoney, Branch, Carbon and Kuda have begun to siphon the tech‑savvy crowd, but their models often target niche segments rather than the broad, low‑income base that CREDICORP aims to serve.
Regulatory clarity is also a moving target. The Central Bank of Nigeria recently hinted at new prudential guidelines for wholesale lenders, which could reshape how CREDICORP structures its capital injections.
Future outlook towards 2030
Looking ahead, the roadmap is ambitious but not fanciful. By 2026, Nwagba envisions reaching at least one million borrowers through an expanded partner network. By 2028, the target is to have a solid data‑analytics engine that scores informal borrowers, turning the “unbanked” into “credit‑ready”. And by the 2030 milestone, the hope is that half of all working Nigerians will be able to tap a formal loan when they need it – a far cry from the 3% baseline.
Success will hinge on three levers: continued government funding, private‑sector partnership agility, and a nationwide push to educate consumers about credit stewardship. If those align, Nigeria could witness a financial‑inclusion renaissance that reverberates across Africa.
Frequently Asked Questions
How will CREDICORP’s wholesale model affect ordinary borrowers?
By supplying low‑cost capital to banks and micro‑finance firms, CREDICORP enables those lenders to lower interest rates and relax collateral demands, making loans more affordable for workers who previously couldn’t qualify.
What kinds of credit products are being introduced for civil servants?
Through the partnership with Credit Direct, civil servants can obtain up to N5 million in personal loans via USSD, WhatsApp or branch visits, with interest rates that sit 2‑3 percentage points below market averages and flexible repayment schedules.
Why is the cooperative‑member program considered a cultural shift?
Beyond handing out funds, the program embeds credit‑education workshops that teach borrowers how to build a credit history, understand scoring, and use credit responsibly – skills that can unlock better housing, vehicle financing and even lower rent costs.
What impact could formalizing the informal credit market have on the economy?
Formalizing a segment that currently represents about 32% of borrowers could add roughly $621 million to the $2.1 billion consumer‑credit pool, spurring consumer spending, supporting small‑business growth, and widening the tax base.
What are the biggest risks to achieving the 50% credit‑access goal?
Key risks include persistent regulatory uncertainty, limited credit‑history data for informal earners, and the need for sustained funding. Overcoming these will require coordinated policy reforms, robust data‑analytics platforms, and ongoing partnerships with both public and private lenders.
While CREDICORP's proclamation to elevate consumer credit participation to fifty percent by 2030 is undeniably audacious, one must contemplate the structural inertia that has hitherto shackled Nigeria's credit ecosystem. The current three‑percent penetration reflects deep‑seated deficiencies in collateral frameworks and wage verification protocols, which a mere infusion of wholesale capital may not swiftly rectify. Moreover, the reliance on partner banks presupposes a readiness to relax risk appetites, a posture that could be compromised by regulatory tightening. Nonetheless, the rhetoric is suffused with a palette of hope, suggesting that the corridors of power are finally attuned to the masses' yearning for financial dignity.
The informal lending customs in Nigeria are woven into communal narratives, where trust supersedes paperwork. By integrating credit‑education workshops, CREDICORP acknowledges that financial literacy is as cultural as it is economic. This succinct alignment of policy with lived experience could serve as a model for other emerging economies.