THIS DAWN — The Federal Government has unveiled a new initiative aimed at tackling financial exclusion among young Nigerians with the launch of the Youth Credit Scheme (YouthCred).
The National Orientation Agency (NOA) announced the programme on December 19, 2025.
It will allow gainfully employed youths between the ages of 18 and 39 to access affordable loans of up to ₦5 million through the Nigerian Consumer Credit Corporation (CREDICORP).
According to the NOA, the scheme is designed to help young workers to:
- overcome financial challenges,
- improve productivity, and,
- build a formal credit history without resorting to unregulated lenders or loan sharks.
The government will back the loans with structured repayment plans tied to salary deductions, ensuring transparency and reducing default risks.
Key Features of YouthCred
- Eligibility: Employed youths in public or private sectors.
- Loan Amount: Up to ₦5 million.
- Interest Rate: Low and affordable, backed by government guarantees.
- Repayment: Structured salary deductions to ease repayment burdens.
Officials say the initiative will provide a safer alternative to high-interest loan apps and informal lending systems that have trapped many young Nigerians in cycles of debt.
By offering affordable credit, the government hopes to stimulate entrepreneurship, support small businesses, and enhance youth participation in the formal economy.
Public Reaction
The announcement has generated significant discussion online.
While many welcomed the scheme as a step toward financial empowerment, others expressed skepticism about its implementation.
Some youths questioned whether the loans would be accessible to self-employed individuals.
Meanwhile, others called for grants instead of credit facilities.
Despite mixed reactions, analysts note that YouthCred could mark a turning point in Nigeria’s efforts to build a sustainable credit culture, especially among its vast youth population.
With over 75% of Nigerians under the age of 35, the programme is seen as a strategic investment in the country’s future.
The NOA emphasized that the scheme reflects the government’s commitment to empowering young citizens and fostering inclusive economic growth.
