Connect with us

Economy

FG’s Pension-backed Loan Scheme to Empowers Nigerian Retirees

Published

on

Pension-backed Loan Scheme

FG’s pension-backed loan scheme provides Nigerian retirees with affordable, secure loans boosting financial inclusion

adron lemon friday

Nigeria’s new pension-backed loan scheme is empowering retirees by offering affordable and secure loans, marking a bold step forward in the country’s financial inclusion efforts.

Also read: Federal Government Disburses N5.12bn Pension Arrears to Over 90,000 Pensioners – PTAD

The Federal Government, through the Nigerian Consumer Credit Corporation in partnership with Leadway Trustees and Optimus Bank, unveiled this innovative initiative to provide retirees access to loans starting from N50,000, with amounts linked to their pension income.

The scheme, launched under the theme “Empowering retirees with consumer credit,” targets both federal and state pensioners.

Uzoma Nwagba, Managing Director and CEO of CREDICORP, highlighted the programme’s focus on affordability, security, and dignity for senior citizens.

“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,” he stated during the signing ceremony in Abuja.

President Bola Tinubu’s inclusive governance, as reflected in the Renewed Hope Agenda, was praised by Nwagba for prioritising opportunities for all Nigerians.

“Annuitants are the backbone of Nigeria’s progress, yet they have been sidelined in the credit ecosystem. This programme changes that narrative,” he said.

The event featured heartfelt testimonials from retirees benefiting from the scheme. Amina Sule, a retired teacher, shared how the loan enabled her to pursue entrepreneurship by starting a poultry business.

Meanwhile, Chukwuemeka Okeke, a retired civil servant, expressed relief at being able to cover healthcare costs without financial strain.

Experts commend the partnership with Leadway Trustees and Optimus Bank for enhancing the scheme’s credibility and sustainability.

By aligning loan amounts with pension income, the programme mitigates risk for lenders while empowering borrowers to manage repayments comfortably.

Beyond individual benefits, the pension-backed loan scheme is expected to invigorate grassroots economic activity.

Retirees accessing funds for small businesses, healthcare, or personal projects could significantly boost local economies.

For the Federal Government, this initiative is more than just a financial product. It represents a commitment to dignity, independence, and empowerment 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.”

Also read: Oyo govt allocates N60 million monthly to clear pension arrears

The pension-backed loan scheme sets a powerful precedent for transforming Nigeria’s consumer credit landscape, bringing retirees from the margins into the heart of financial inclusion.

61 / 100 SEO Score

Economy

Cash Outside Nigerian Banks Rises to N4.92tn

Published

on

Cash outside Nigerian banks rose to N4.92tn in September 2026 as Nigeria’s broad money supply increased to N146.6tn, CBN data show

Cash outside Nigerian banks rose to N4.92tn in September 2026, an increase of N48.73bn from the N4.87tn recorded in August, according to monetary data published by the Central Bank of Nigeria.

Also read: UCL: Nico Paz Scores Twice as Como Crush Man United

adron lemon friday

The latest figures also showed an expansion in Nigeria’s broad money supply, which increased to N146.6tn in September from N139.09tn in the previous month.

The growth represents an increase of N7.51tn within one month, reflecting a broader expansion in the amount of money circulating across the economy.

The CBN data further showed that narrow money, which consists of currency in circulation and highly liquid deposits, rose to N44.05tn in September from N43.11tn in August.

Cash held outside banks refers to physical currency kept by individuals and businesses rather than within the banking system.

Broad money, by contrast, covers a wider range of monetary assets, including cash, demand deposits, savings and time deposits, as well as foreign currency deposits.

Nigeria’s broad money supply increased by 18.3 per cent between January and September, rising from N123.95tn to N146.6tn, the data indicated.

The latest increase followed the CBN’s decision in September to reduce its benchmark interest rate by 350 basis points, bringing it down from 26.5 per cent to 23 per cent.

The reduction was reported as the largest cut in the benchmark rate since December 2006.

Despite the rate cut, the Monetary Policy Committee retained the Cash Reserve Requirement for commercial banks at 45 per cent and merchant banks at 16 per cent.

The committee also maintained the 75 per cent reserve requirement on non-Treasury Single Account public-sector deposits.

The Cash Reserve Requirement determines the proportion of eligible deposits that banks must hold as reserves with the central bank.

It is one of the monetary policy tools used to influence banking-sector liquidity and credit conditions.

The rise in cash outside Nigerian banks formed part of the broader increase in money supply.

Also read: UCL: Nico Paz Scores Twice as Como Crush Man United

However, the figures alone do not establish why households and businesses held more physical cash or how much of the increase was driven by spending, savings behaviour or other economic factors.

65 / 100 SEO Score
Continue Reading

Economy

Obasanjo: Policy is meaningless without entrepreneurs like Wale Tinubu

Published

on

Obasanjo

Olusegun Obasanjo says government policies require entrepreneurs like Wale Tinubu to translate economic plans into investment, industrial growth and jobs (more…)

73 / 100 SEO Score
Continue Reading

Business

Wale Tinubu Says Nigeria’s Creativity Can Drive Exports

Published

on

Wale Tinubu

Wale Tinubu says Nigeria’s creativity can become a major export industry, creating jobs, attracting foreign exchange and building sustainable businesses (more…)

63 / 100 SEO Score
Continue Reading

Trending News