By Priscilla Osaje | Abuja, Dec. 12, 2025
The Federal Government has announced a significant evolution of its flagship youth finance program, extending the Nigerian Consumer Credit Corporation’s (CREDICORP) YouthCred initiative to formally employed young Nigerians. This strategic pivot moves beyond the initial focus on National Youth Service Corps (NYSC) members and entrepreneurs, signaling a broader vision to integrate salaried youth into the formal credit ecosystem.
From Pilot to National Pathway: Scaling Impact
At the launch event in Abuja, CREDICORP’s Managing Director, Uzoma Nwagba, framed the expansion as a response to proven success and escalating demand. “YouthCred has matured from a pilot project into a national pathway for youth empowerment,” Nwagba stated. He revealed that in its first year, the program disbursed over N30 billion to more than 200,000 Nigerians, primarily for asset financing like mobility (vehicles, motorcycles) and digital tools (laptops, software).
Perhaps the most compelling metric cited was a 0% non-performing loan (NPL) rate to date. This performance, attributed to “responsible lending practices and proper verification systems,” challenges prevailing narratives about youth credit risk and provides a data-driven foundation for scaling. The new target is ambitious: reaching one million youth by 2026.
Decoding the “YouthCred for Employed Youth” Scheme
The expanded program offers specific, attractive terms designed to be accessible:
- Eligibility: Gainfully employed Nigerians aged 18-39.
- Loan Ceiling: Up to N5 million per individual.
- Collateral: None required—a major barrier removed for young workers.
- Interest Rate: As low as 2% per month (approximately 24% per annum). While this is below many informal lenders, it’s crucial for beneficiaries to understand the annualized cost.
- Repayment: A six-month moratorium period before repayments begin.
Nwagba positioned the scheme as a direct alternative to predatory ‘loan sharks’, which often charge exorbitant, compounding interest rates that trap borrowers in cycles of debt. YouthCred aims to provide a sustainable, regulated, and affordable credit option.
Strategic Context: Aligning Credit with Broader Economic Reforms
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, connected the initiative to President Bola Tinubu’s macroeconomic agenda. “This is a practical expression of the President’s vision for a modern, credit-enabled economy,” Edun said. He stressed that as government reforms—such as exchange rate normalization and fiscal consolidation—strengthen the macro-economy, citizens must feel tangible benefits in their daily lives.
“YouthCred is about dignity, financial independence, and access to resources to live your dreams,” Edun emphasized. The program is designed to achieve multiple objectives simultaneously:p>
- Stimulate Consumer Spending: By increasing purchasing power for a large demographic.
- Enhance Productivity: By financing tools (e.g., a mechanic buying diagnostic equipment, a graphic designer upgrading a computer) that increase earning capacity.
- Deepen Financial Inclusion: By bringing salaried youth, who may only use basic bank accounts, into the formal credit system, building their credit histories.
- Support SMEs Indirectly: Many employed youth may use funds for side-businesses or to become more valuable employees in small firms.
Edun concluded with a vision of systemic change: “Under President Tinubu, it is no longer a question of a few people having privileged access. The access to opportunity is for all… The ultimate aim is to build, and we’re well on the way with the removal of market distortions and stabilizing of the economy.”
Analysis: Opportunities and Considerations for the Road Ahead
The expansion of YouthCred represents a bold policy experiment. Its success will hinge on several factors:
- Sustaining Credit Quality: Maintaining a low NPL rate while scaling tenfold will be a formidable challenge requiring robust, technology-driven verification of employment and income.
- Financial Literacy: Access to credit must be paired with education on responsible borrowing to prevent over-indebtedness. The 2% monthly rate, while competitive, must be clearly communicated.
- Economic Resilience: The program’s health is tied to broader job security. An economic downturn affecting youth employment could quickly impact repayment rates.
- Inflation Hedge: With significant inflation in Nigeria, the real value of the N5 million ceiling and the real cost of borrowing are dynamic factors.
If executed effectively, YouthCred for Employed Youth could catalyze a virtuous cycle: credit builds assets, assets enhance productivity and income, and increased income supports repayment and further economic activity. It transforms credit from a perceived burden into a tool for wealth creation and economic participation, precisely as its architects intend.
(Source: NAN News – www.nannews.ng)
Edited by Funmilayo Adeyemi
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