As part of efforts to transform Nigeria’s consumer credit system, the Federal Government, through the Nigerian Consumer Credit Corporation (CREDICORP), has introduced a pension-backed loan initiative designed to support and empower retirees.

Launched in partnership with Leadway Trustees and Optimus Bank, the scheme offers retirees access to loans starting from ₦50,000, with the maximum amount determined by the size of their pension income.

Speaking at the signing of a Memorandum of Understanding (MoU) in Abuja on Thursday, the Managing Director/Chief Executive Officer, CREDICORP, Uzoma Nwagba, underscored the programme’s transformative potential.

The MD/CEO explained that the scheme, launched under the theme “Empowering Retirement with Consumer Credit,” is for both federal and state pensioners.

Engr. Nwagba commended President Bola Tinubu for prioritising financial inclusion through the Renewed Hope Agenda, noting that the pension-backed loan programme reflects the administration’s commitment to creating opportunities for all Nigerians, including senior citizens who had long been excluded from access to consumer credit.

He stressed that retirees, after years of dedicated service to the country, deserve access to affordable financing for healthcare, small businesses, home improvements, and family needs.

His words: “The programme leverages pension income, offering retirees tailored, low-interest loans that are both secure and sustainable.
“This first-of-its-kind product ensures that Nigeria’s seniors can access credit with dignity, without the burden of exorbitant rates or complex processes.
“Annuitants are the backbone of Nigeria’s progress, yet they have been sidelined in the credit ecosystem. This programme changes that narrative. By partnering with Leadway Trustees’ expertise in pension management, we are delivering a credit solution that is safe, affordable, and transparent. This is consumer credit redefined: inclusive, equitable, and empowering.”

The event, attended by stakeholders from the financial sector, pension industry, and annuitants’ associations, featured powerful testimonials from early beneficiaries. Amina Sule, a 68-year-old retired teacher, said: “For years, I have wanted to start a small poultry business to stay active and support my family.
“This programme gives me the confidence to borrow affordably, knowing my pension secures my loan. It’s not just credit, it’s hope and independence.”
Another beneficiary, Chukwuemeka Okeke, a retired civil servant, added: “Medical bills can be overwhelming. With this loan, I can cover my healthcare needs without stress. The process was straightforward, and I feel respected as a retiree.”