The Federal Government is set to introduce a consumer credit program and a mortgage scheme

 The Federal Government is set to introduce a consumer credit program and a mortgage scheme with low interest rates to alleviate financial pressures on Nigerians.

This was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, during Access Bank’s Corporate Forum in Lagos on Thursday.

Edun announced, “A consumer credit initiative is coming for Nigerians. It will support the manufacturing sector by offering consumers pay-as-you-go options, particularly for durable goods.”

He also emphasized the government's focus on offering near single-digit interest rates for 25-year mortgages to boost the housing and construction sectors.

Furthermore, Edun highlighted the government's partnership with farmers, stating that 60,000 farmers would be provided with necessary inputs, with results expected by early next year.

“The government may not be vocal about its efforts, but a lot is happening behind the scenes for the benefit of Nigerians. By January or February, people will begin to see the results, such as harvests of cassava and other crops,” he said.

He added, “I must stress that everything is being done to fulfill the President’s commitment to supporting vulnerable Nigerians through direct transfers, allowing them to prioritize their needs. As we saw during the COVID-19 pandemic, there is a strong determination to succeed in this area.”

Edun further mentioned a net inflow of $2.35 billion into the Central Bank of Nigeria's (CBN) foreign reserves over the last seven months, which has contributed to the stabilization of the naira.

“This trend has been consistent throughout 2024. We’ve seen relative currency stability and a gradual phasing out of multiple exchange rates. Foreign exchange liquidity has improved, and gross reserves are increasing. There has been a net inflow of around $2.35 billion monthly during the first seven months of the year," Edun explained.

On the fiscal side, Edun highlighted that government revenues are rising but emphasized that the government is not aiming to compete with the private sector in this regard.

Looking forward, Edun projected stronger GDP growth for Nigeria by 2026, targeting a crude oil production increase to two million barrels per day by the end of 2024.

He also mentioned that electricity tariffs for higher usage bands (‘A’ and ‘B’) would remain above 200kWh, telecom tariffs would see a significant rise, and there would be an efficient forex auction system. Additionally, unencumbered foreign reserves would reach $20 billion, inflation would decline to 22 percent, and the Monetary Policy Rate (MPR) would be reduced to 20 percent annually.

Economist Bismarck Rewane supported these positive forecasts, predicting 3.5 percent economic growth for Nigeria by 2026, alongside ongoing reforms in tariffs, forex systems, and inflation control.

Roosevelt Ogbonna, Access Bank’s Managing Director, underlined the need for businesses to stay informed about government fiscal policies, saying, “The government remains a major part of our economic landscape.”