FG inaugurates pension-support loan for retirees
Chief Executive Officer, CREDICORP, Uzoma Nwagba
… offering retirees access to loans from ₦50,000.
In a move aimed at boosting the nation’s consumer credit system, the Federal Government, through the Nigerian Consumer Credit Corporation, on Thursday, launched a pension-backed loan scheme designed to empower retirees.
The initiative, launched in collaboration with Leadway Trustees and Optimus Bank, offers retirees access to loans starting from ₦50,000, with the maximum benchmark to be determined by the size of the pension income.
Nigeria’s pension system has undergone significant reforms over the past two decades, with the Pension Reform Act of 2004 and its subsequent amendments introducing the Contributory Pension Scheme to address decades of mismanagement and unpaid retirement benefits.
Despite these reforms, retirees often face financial difficulties, with limited access to credit and delayed payments, leaving many unable to meet urgent needs.
Speaking at the signing of the Memorandum of Understanding in Abuja, the Managing Director and Chief Executive Officer of CREDICORP, Uzoma Nwagba, said the initiative would give retirees a new lease of life.
Nwagba noted that the scheme, launched under the theme “Empowering retirees with consumer credit,” covers both federal and state pensioners.
He commended President Bola Tinubu for his financially inclusive model of governance as enshrined in the Renewed Hope Agenda, stressing that the pension-backed loan programme reflects the administration’s commitment to creating opportunities for all Nigerians.
These, he added, include senior citizens who, for long, have not benefited from consumer credit.
He said, “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 senior citizens 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 testimonials from early beneficiaries.
For instance, Amina Sule, a 68-year-old retired teacher, said, “For years, I 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.”
Also speaking, a retired civil servant, Chukwuemeka Okeke, said, “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.”
Consumer credit in Nigeria remains underdeveloped compared to global standards, where retirees in countries like the United States and the United Kingdom can easily access mortgages, healthcare, or small business loans backed by their pension or social security income.
In Nigeria, retirees have largely been excluded from such credit facilities, leading to widespread financial insecurity in old age.
The Federal Government’s decision to introduce a pension-backed loan scheme through the Nigerian Consumer Credit Corporation marks the first structured attempt to integrate retirees into the country’s consumer credit ecosystem.
By leveraging pension payments as collateral, the initiative seeks to provide senior citizens with safe and affordable credit for healthcare, small-scale enterprises, and other personal needs.
The move is also in line with President Bola Tinubu’s Renewed Hope Agenda, which emphasises financial inclusion, poverty reduction, and economic empowerment.
