FG Introduces Pension-backed Loans Scheme to Support Retirees
In a bold move to strengthen Nigeria’s consumer credit system and extend financial inclusion to senior citizens, the Federal Government on Thursday launched a pension-backed loan scheme for retirees.
The initiative, introduced through the Nigerian Consumer Credit Corporation in partnership with Leadway Trustees and Optimus Bank, is designed to empower pensioners by giving them access to affordable and secure loans. Retirees can borrow from N50,000 upwards, with the maximum amount tied to the size of their pension income.
Speaking at the signing of the Memorandum of Understanding in Abuja, the Managing Director and Chief Executive Officer of CREDICORP, Uzoma Nwagba, said the scheme would provide retirees with a new lease of life.
Launched under the theme “Empowering retirees with consumer credit,” the programme covers both federal and state pensioners. According to Nwagba, it is built on the principles of affordability, security, and dignity for senior citizens.
“The programme 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 his inclusive governance model, as enshrined in the Renewed Hope Agenda, which prioritizes opportunities for all Nigerians. He emphasized that pensioners, who for decades had been excluded from the credit ecosystem, now have a pathway to affordable finance.
“Annuitants are the backbone of Nigeria’s progress, yet they have been sidelined in the credit ecosystem. This programme changes that narrative,” Nwagba added. “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 Abuja event drew stakeholders from the financial sector, pension industry, and annuitants’ associations. It also featured moving testimonials from early beneficiaries who shared how the programme is already transforming their lives.
Amina Sule, a 68-year-old retired teacher, said the pension-backed loan finally gave her the opportunity 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,” she recounted. “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, Chukwuemeka Okeke, a retired civil servant, said the scheme had provided him with peace of mind regarding his 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.
Industry observers hailed the scheme as a milestone in Nigeria’s financial inclusion journey, particularly for pensioners who had been largely invisible in credit policy discussions. By tying loan amounts to pension income, the scheme reduces risk for lenders while ensuring borrowers can comfortably meet repayment obligations.
Analysts also note that the partnership with Leadway Trustees and Optimus Bank enhances credibility, given their track records in pension administration and financial services. The collaboration is expected to ensure smooth implementation, transparency, and long-term sustainability of the programme.
Beyond individual empowerment, the initiative is projected to stimulate grassroots economic activities. With more retirees able to access funds for small businesses, healthcare, or personal projects, local economies stand to benefit from increased spending and productivity.
For the Federal Government, the pension-backed loan scheme is more than just a financial product—it is a statement of intent. By extending credit access to senior citizens, the Tinubu administration underscores its pledge to create opportunities for all Nigerians, regardless of age.
As Nwagba concluded at 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 fairness and sustainability, the programme represents a significant step in reshaping Nigeria’s consumer credit landscape—one that brings retirees from the margins to the mainstream of financial inclusion.