CREDICORP and NCGCL Partner to Boost Consumer Credit

CREDICORP and the National Credit Guarantee Company Limited (NCGCL) have entered into a memorandum of understanding to create a strategic risk-sharing partnership focused on expanding access to affordable consumer credit for qualified Nigerians. This initiative aims to reduce lending risks for financial institutions and strengthen Nigeria's consumer credit ecosystem.

The partnership will enable NCGCL to provide partial credit guarantees for loans issued through CREDICORP's network of participating financial institutions. The arrangement is expected to encourage banks and financial institutions to extend loans to individuals by minimizing potential losses associated with defaults.

The partnership aligns with President Bola Tinubu's 2025 initiative, which includes a capital base of ₦100 billion to share lending risks. The focus will be on consumer lending, including personal loans and household asset financing, utilizing digital technology to enhance financial services.

CREDICORP will also conduct credit appraisals and monitor loan portfolios across participating institutions, ensuring transparency and accountability in the program set to be established in 2024.