The initiative, rolled out on Thursday by the Nigerian Consumer Credit Corporation (CREDICORP) in partnership with Leadway Trustees and Optimus Bank, provides loans starting from ₦50,000, with maximum amounts tied to individual pension income levels.
Nigeria’s pension system has witnessed reforms over the last two decades, beginning with the Pension Reform Act of 2004, which introduced the Contributory Pension Scheme to address years of mismanagement and unpaid entitlements. Despite these reforms, retirees still struggle with financial hardship, delayed pension payments, and lack of access to credit.
Speaking during the signing of a Memorandum of Understanding in Abuja, CREDICORP Managing Director and CEO, Uzoma Nwagba, said the scheme was created to give retirees “a new lease of life” under the theme “Empowering Retirees with Consumer Credit.”
He explained that the programme covers both federal and state pensioners and commended President Bola Tinubu for prioritising financial inclusion in line with his Renewed Hope Agenda.
“The programme leverages pension income, offering retirees tailored, low-interest loans that are both secure and sustainable. This ensures that Nigeria’s senior citizens can access credit with dignity, without the burden of exorbitant rates or complex processes,” Nwagba said.
He added that the product, the first of its kind in Nigeria, would allow retirees to finance healthcare, small businesses, and personal needs.
The launch event, which attracted stakeholders from the financial sector, pension industry, and retirees’ associations, also featured testimonies from early beneficiaries.
Amina Sule, a 68-year-old retired teacher, said: “For years, I wanted to start a poultry business to 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 retiree, Chukwuemeka Okeke, said the scheme had given him a way to cover urgent medical expenses without stress. “The process was straightforward, and I feel respected as a retiree,” he noted.
While consumer credit remains underdeveloped in Nigeria compared to countries like the U.S. and U.K., the pension-backed loan scheme represents the first structured move to integrate senior citizens into the nation’s credit system.
The government says the initiative is a major step towards reducing poverty, driving economic empowerment, and ensuring retirees are not excluded from opportunities to live with dignity after years of service.
