The Nigerian Consumer Credit Corporation (CREDICORP) has revealed that only three percent of Nigerian workers accessed formal consumer credit in the past year, exposing the significant gap in Nigeria’s credit system.
Speaking in Abuja during the World Consumer Rights Day, Uzoma Nwagba, CEO of CREDICORP, noted: “For consumer credit to make a real difference in the economy, it must reach 50 percent of the country’s GDP, amounting to N176 trillion. At present, the country falls short, with a credit gap of N141.3 trillion.”
He stated that the lack of consumer credit access is not due to insufficient funds but rather a breakdown of trust in the system. “Large sums already circulate within the financial sector and could be mobilized, yet millions remain unable to access credit due to systemic inefficiencies.”
Nwagba pointed out this challenge goes beyond policy and requires innovation. He explained that consumer credit must be made widely accessible through creative approaches, which in turn will attract the necessary regulations, infrastructure, and economic frameworks to sustain it.
According to him, consumer credit serves two important functions. First, it is a product that must be structured like any other financial service to reach those who are currently excluded. He noted that innovative solutions such as mobile nano-loans, instant credit approvals at purchase points, “buy now, pay later” options, and digitized savings group records could expand credit access. He also stated that specially designed loan products for women and youth would ensure broader financial inclusion.
Secondly, consumer credit plays a key role in unlocking access to essential goods and services. He explained that credit enables people to afford solar home systems, digital devices, vehicles, improved housing, and household furniture, which in turn supports job creation and economic growth. He noted that smartphone penetration in Nigeria is still below 30 percent, but increased access to credit would allow more people to acquire digital devices and participate in the modern economy.
To bridge the N141.3 trillion credit gap, Nwagba stated that CREDICORP is working to build a strong credit infrastructure that will make access to loans easier, safer, and more reliable.
He explained that this involves ensuring that all working Nigerians have a dependable credit score that facilitates access to financial opportunities. He added that the Central Bank of Nigeria’s (CBN) movable collateral registry and global standing instruction (GSI) should be made more accessible to ethical lenders, while alternative forms of collateral, including digital assets, agricultural output, and even legally quantifiable labor, should be explored.
He also spoke about CREDICORP’s role in providing wholesale lending and credit guarantees to financial institutions, allowing them to extend loans to a larger segment of the population. Beyond lending, he noted that a cultural shift is necessary to make consumer credit more widely understood and accepted as a tool for financial empowerment.
CREDICORP aims to ensure that at least 50 percent of all working Nigerians have access to consumer credit by 2030. The organization is already seeing progress, with more individuals and businesses benefiting from its initiatives.
Nwagba stated that CREDICORP is not just offering loans but creating a system that supports financial stability and economic opportunity. He added that partnerships with financial institutions, regulators, innovators, and international organizations will continue to play a role in achieving this vision.
He described the journey towards consumer credit expansion as long but essential, with the potential to reshape Nigeria’s financial landscape and drive sustainable economic growth.
