Business

CREDICORP: 151 Financial Institutions Show Interest Before Credit Disbursements

CREDICORP: 151 Financial Institutions Show Interest Before Credit Disbursements

By Ifeoma Ikem

 

As the recently established Nigeria Consumer Credit Corporation (CREDICORP) advances towards disbursement of consumer credit to Nigerians, sequel to the success on its recent Expression of Interest (EOI) campaign for financial institutions, no fewer than 151 organisations have indicated interest.

The CREDICORP is a Federal Government corporation with a mandate to expand consumer credit access to millions of Nigerians. In just one month, over 151 financial institutions have completed the detailed EOI. This includes commercial banks, microfinance institutions, finance companies, fintechs, mortgage banks, and cooperatives.

Notably, 85 of these institutions are licensed by the Central Bank of Nigeria (CBN), collectively serving over 1.5 million consumer credit customers. Qualified and ready institutions are being reviewed and shortlisted for the pilot phase of the scheme, according to information from management of the Corporation.

The eagerness of financial institutions to partner with CREDICORP highlights the strategic vision and immense benefits of targeted consumer credit under President Bola Tinubu’s Renewed Hope Agenda, on a mission to improve quality of lives, help stem corruption, and catalyse industry.

The Managing Director/Chief Executive Officer of CREDICORP, Mr. Uzoma Nwagba of CREDICORP, has expressed his enthusiasm saying: “The EOI remains an ongoing process and is quite detailed. We are pleased by the depth of engagements from financial institutions – especially the leading institutions of each type.

“This speaks to the excitement of financial institutions to partner with CREDICORP to receive our development finance or targeted credit guarantees. Together with our partners, we are poised to accelerate consumer credit access, ensuring that millions more Nigerians can access the financial resources and products they need to improve their lives, backed by their income.”

From a recent report released by the Corporation on the EOI’s so far, here are other notable highlights on consumer credit by the CBN-licensed institutions:

“Average Interest Rate: The participating institutions report an average interest rate of
37% per annum on their consumer credit portfolios. This strengthens CREDICORP’s resolve in designing financial products with its partners to enable lower but sustainable rates on an ongoing basis.

Average Tenor: The institutions report an average tenor for consumer credit of 26 months, indicating a growing appetite for lending over extended periods. This contrasts with less formal lenders which may focus on shorter tenors to leverage faster turnover of capital.

Average NPLs: The consumer credit portfolios for profitable institutions show an average NPL of 6%, while the average NPL across all other credit is 9%. The commercial banks show a reverse pattern from the average (i.e. higher NPLs on consumer credit than other credit), likely due to a wider range of options to deploy their capital (e.g. corporates) and therefore deepened focus and expertise in those.

These findings underscore the dynamic nature of the consumer credit market in Nigeria and the need for continued innovation and support to ensure its sustainable growth. CREDICORP will proceed to review the submissions from Participating Financial Institutions (PFIs) in line with its governance and eligibility criteria – in preparation for disbursements to commence shortly.

The EOI for Financial Institutions remains open for submissions, and can be accessed at the Corporation’s website (www.credicorp.ng).

Sahara Weekly

Sahara weekly online is published by First Sahara weekly international. contact saharaweekly@yahoo.com

Recent Posts

TAIWO OYEKAN To Empower Lagos Island Vulnerable Residents With N20 Million

*TAIWO OYEKAN To Empower Lagos Island Vulnerable Residents With N20 Million* *• Nigeria Police Force…

4 hours ago

Christmas In Delta: Organizers Announce Second Edition Of Africa’s Most Anticipated Event

Christmas In Delta: Organizers Announce Second Edition Of Africa's Most Anticipated Event     The…

4 hours ago

EFCC: AS THE NATION AWAITS THE SUPREME COURT By Tunde Nasir

EFCC: AS THE NATION AWAITS THE SUPREME COURT By Tunde Nasir Since the new EFCC…

5 hours ago

Botswana Election: Shocking Fulfilment Of Primate Ayodele’s Prophecy (VIDEO)

*Botswana Election: Shocking Fulfilment Of Primate Ayodele’s Prophecy (VIDEO)     The outcome of the…

10 hours ago

PRESIDENT TINUBU CONGRATULATES DR ADEDUNTAN, AS FIRST BANK CELEBRATES EX-GROUP CEO

PRESIDENT TINUBU CONGRATULATES DR ADEDUNTAN, AS FIRST BANK CELEBRATES EX-GROUP CEO STATE HOUSE PRESS RELEASE…

11 hours ago

Speaker Obasa Presents Vehicles To Lagos Assembly Senior Staff

Speaker Obasa Presents Vehicles To Lagos Assembly Senior Staff The Speaker of the Lagos State…

12 hours ago