The Federal Government of Nigeria has launched a groundbreaking consumer credit scheme offering up to ₦2 million in interest-free instalment financing to support Nigerians and boost local production. This initiative, spearheaded by the Consumer Credit Corporation of Nigeria (Credicorp), aims to ease financial pressure, improve livelihoods, and stimulate the local economy.

*Key Features:*

- *Interest-Free Instalment Financing*: Citizens can access credit for essential needs like school fees, rent, digital devices, and household appliances without upfront payments.

- *Wholesale Financier and Risk-Sharer*: Credicorp will work with banks, fintechs, cooperatives, and microfinance institutions to offer structured consumer credit.

- *Centralized Credit System*: A new system linked to National Identification Numbers (NINs) will enable accurate credit assessments and responsible lending.

- *Support for Local Industry*: The SCALE initiative will channel credit towards Nigerian-made goods, promoting local production and job creation.

*Benefits:*

- *Improved Access to Credit*: Normalizing access to consumer credit will help Nigerians live decently without exploitative financial arrangements.

- *Boost to Local Economy*: By supporting local industry, the scheme aims to drive demand for Nigerian-made goods and build a more self-reliant economy.

- *Job Creation*: The initiative is expected to create jobs and stimulate economic growth.

*Target Beneficiaries:*

- *Federal Civil Servants*: Phase one of the rollout targets federal civil servants, with over 1.6 million people expressing interest since applications opened in April.

- *Small and Medium Enterprises (SMEs)*: The scheme will also support SMEs and local businesses through access to credit and other resources ¹.

Source: SME AFRICA ONLINE