FG LAUNCHES PENSION-SUPPORT LOAN SCHEME TO EMPOWER RETIREES
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By: Sefiu Ajape
In a bid to strengthen Nigeria’s consumer credit system, the Federal Government, through the Nigerian Consumer Credit Corporation (CREDICORP), on Thursday launched a pension-backed loan scheme designed to support retirees.
The initiative, implemented in partnership with Leadway Trustees and Optimus Bank, will allow pensioners to access loans starting from ₦50,000, with the maximum amount determined by the size of their pension income.
Nigeria’s pension framework has seen major reforms in the past two decades, beginning with the Pension Reform Act of 2004 and subsequent amendments that introduced the Contributory Pension Scheme to tackle years of mismanagement and unpaid retirement entitlements.
Despite these reforms, retirees have continued to face financial hardship, with poor access to credit and delays in payments, leaving many unable to meet urgent needs.
Speaking during the signing of the Memorandum of Understanding in Abuja, the Managing Director and Chief Executive Officer of CREDICORP, Uzoma Nwagba, said the scheme would offer retirees a renewed sense of dignity.
Nwagba explained that the programme, launched under the theme “Empowering retirees with consumer credit,” covers both federal and state pensioners.
He praised President Bola Tinubu for promoting a financially inclusive governance model under the Renewed Hope Agenda, noting that the pension-backed loan scheme reflects the administration’s drive to create opportunities for all Nigerians, including senior citizens who have long been excluded 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 launch drew stakeholders from the financial and pension sectors as well as retirees’ associations, with some beneficiaries sharing personal experiences.
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.”*
Similarly, 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 limited when compared to developed economies, where retirees in places like the United States and the United Kingdom can easily access mortgages, healthcare loans, or small business funding backed by pensions or social security.
By introducing this pension-backed loan scheme, the Federal Government has taken a first structured step to integrate retirees into the consumer credit space.
With pension payments serving as collateral, the initiative seeks to provide affordable financing for healthcare, small enterprises, and personal needs, in line with President Tinubu’s Renewed Hope Agenda that prioritises inclusion, poverty reduction, and empowerment.
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