The Federal Government has launched a new pension-backed loan scheme aimed at giving Nigerian retirees access to affordable credit and bringing them into the nation’s consumer credit system. The initiative, which was unveiled in Abuja on Thursday, is being implemented through the Nigerian Consumer Credit Corporation (CREDICORP) in partnership with Leadway Trustees and Optimus Bank.
The scheme allows pensioners to borrow from as little as N50,000, with the maximum amount determined by the size of their pension income. It is designed to provide financial security and dignity to senior citizens, many of whom have been excluded from Nigeria’s credit system for decades.
Speaking at the signing of the Memorandum of Understanding, the Managing Director and Chief Executive Officer of CREDICORP, Mr. Uzoma Nwagba, said the programme is the first of its kind in Nigeria and will change the way retirees access credit. He explained that the initiative is built on three key principles—affordability, security, and dignity.
“The programme leverages pension income, offering retirees tailored, low-interest loans that are both secure and sustainable,” Nwagba said. “This 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.”
The new product is part of President Bola Tinubu’s Renewed Hope Agenda, which focuses on inclusive governance and creating opportunities for all Nigerians, regardless of age or status. Nwagba commended the President for backing the project, noting that pensioners who had long been excluded from financial opportunities now have a pathway to affordable credit.
He added that the partnership with Leadway Trustees and Optimus Bank will guarantee transparency and long-term sustainability. “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,” he said.
The Abuja launch attracted stakeholders from the financial sector, pension industry, and associations of annuitants. The event also featured emotional testimonies from early beneficiaries who shared how the loan programme had already improved their lives.
One of them, Mrs. Amina Sule, a 68-year-old retired teacher, said the loan gave her the chance to pursue her long-time dream of starting a poultry business. “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,” she said.
Another retiree, Mr. Chukwuemeka Okeke, a former civil servant, said the scheme brought him peace of mind regarding medical 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 explained.
Financial experts have described the initiative as a milestone in Nigeria’s financial inclusion journey. They noted that by tying loan amounts directly to pension income, the programme reduces risks for lenders and ensures that repayment terms remain manageable for borrowers. The involvement of reputable partners like Leadway Trustees and Optimus Bank, according to analysts, strengthens confidence in the scheme’s credibility and operational sustainability.
Beyond personal empowerment, the pension-backed loan is expected to boost grassroots economic activity. With retirees able to access funds for small businesses, healthcare, or personal projects, local economies are likely to benefit from increased spending and productivity. The initiative also positions pensioners as active contributors to the economy rather than being seen only as dependents.
For the Federal Government, the scheme is more than just a financial product; it is a statement of intent about inclusivity and fairness in governance. By extending credit access to retirees, the Tinubu administration is demonstrating its resolve to ensure that no Nigerian is left behind in the nation’s financial growth.
As Nwagba put it during the launch, “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.”
With its focus on security, transparency, and affordability, the pension-backed loan scheme represents a major step forward in Nigeria’s credit system. It marks the beginning of a new chapter where retirees, once excluded, can now participate fully in the financial system with confidence and dignity.
