The Federal Government has launched a pension-backed loan scheme to strengthen Nigeria’s consumer credit system and extend financial inclusion to senior citizens.
The initiative, introduced through the Nigerian Consumer Credit Corporation (CREDICORP) in partnership with Leadway Trustees and Optimus Bank, allows retirees to access loans starting from N50,000, with maximum amounts tied to the size of their pension income.
Speaking at the signing of the Memorandum of Understanding in Abuja, Uzoma Nwagba, Managing Director and Chief Executive Officer of CREDICORP, stated that the scheme would provide retirees with affordable loans, thereby restoring their dignity in accessing finance.
“The program leverages pension income, offering retirees tailored, low-interest loans that are both secure and sustainable,” he explained. “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.”
Nwagba commended President Bola Tinubu for prioritizing inclusive governance under the Renewed Hope Agenda, noting that pensioners who had long been excluded from the credit ecosystem now have a pathway to finance.
“Annuitants are the backbone of Nigeria’s progress, yet they have been sidelined in the credit ecosystem. This program changes that narrative. By partnering with Leadway Trustees’ expertise in pension management, we are delivering a credit solution that is safe, affordable, and transparent,” he said.
The Abuja event drew stakeholders from the financial sector, pension industry, and retirees’ associations, and featured testimonials from early beneficiaries.
Amina Sule, a 68-year-old retired teacher, said the scheme allowed her to pursue her long-time dream of entrepreneurship. “For years, I wanted to start a small poultry business to stay active and support my family. This program gives me the confidence to borrow affordably, knowing my pension secures my loan. It’s not just credit, it’s hope and independence,” she said.
Similarly, Chukwuemeka Okeke, a retired civil servant, noted that the initiative had eased his worries about healthcare expenses. “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,” he said.
CREDICORP emphasized that tying loans to pension income reduces risk for lenders while ensuring retirees can comfortably meet repayment obligations. The partnership with Leadway Trustees and Optimus Bank is expected to guarantee smooth implementation, transparency, and long-term sustainability.
Beyond supporting individuals, the scheme is projected to stimulate grassroots economic activity, as retirees channel funds into small businesses, healthcare, and other personal projects.
For the Federal Government, the pension-backed loan scheme represents more than a financial product. It is a statement of intent to broaden credit access, strengthen financial inclusion, and uphold dignity for Nigeria’s senior citizens.
As Nwagba concluded, “This is not only about loans; it is about dignity, independence, and empowerment for those who have given their best years to building our nation.”
