The Federal Government has unveiled the YouthCred for Employed Youth initiative, an expansion of the Nigerian Consumer Credit Corporation (CREDICORP) programme. Under the scheme, employed Nigerians aged 18 to 39 can now access loans of up to ₦5 million.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the initiative as a cornerstone of President Bola Tinubu’s vision for a modern, credit-driven economy. He said the programme is designed to ease financial pressures on young workers, stimulate consumer spending, and support small businesses.

Why It Matters

Nigeria has long struggled with limited access to affordable credit, leaving many young people dependent on informal “loan sharks.” The YouthCred initiative aims to change this by:

• Expanding financial inclusion for young workers and entrepreneurs.
• Providing collateral-free loans with interest rates as low as 2% monthly.
• Offering a six-month moratorium before repayment begins.
• Building a credit culture through mandatory financial literacy modules.

Edun emphasised that the scheme is about “dignity and financial independence,” ensuring that access to opportunity is no longer restricted to a privileged few.

Track Record So Far

According to CREDICORP Managing Director, Uzoma Nwagba:

• Over ₦30 billion has been disbursed in the past year.
• More than 200,000 Nigerians have benefited, including youth corps members and workers needing financing for mobility or digital tools.
• The programme has recorded zero non-performing loans to date.
• The target is to reach one million youths by 2026.

How It Works

The YouthCred platform offers flexible loan tiers:

• From ₦5,000 for employed youths to ₦5 million for entrepreneurs.
• Repayments are automatically deducted from salaries or NYSC allowances.
• Loan tenors extend up to 24 months.
• Applications are processed entirely online, with verification systems to prevent abuse.

The Bigger Picture

The expansion of YouthCred reflects the government’s broader economic reform agenda:

• Boosting productivity by giving young people access to tools and resources.
• Stimulating growth through consumer spending and enterprise support.
• Reducing reliance on informal lenders by offering structured, affordable credit.
• Promoting inclusion, with special focus on youth, women, and disadvantaged groups.

What Comes Next

Phase Two of the initiative will scale up nationwide, with the government pledging responsible lending practices to ensure loans remain a tool for empowerment rather than a burden. By 2026, the administration hopes to have created a sustainable, credit-enabled economy where young Nigerians can build financial independence and contribute to long-term growth.