Nigeria CREDICORP: Launches SPARK USSD Loans for Consumers

• The Federal Government has launched SPARK, a USSD-based credit service, to provide consumer loans to Nigerians via basic mobile phones.
• Managed by the Nigerian Consumer Credit Corporation (CREDICORP), the service uses the USSD code *347*333# and aims to help first-time borrowers build credit history.
• SPARK was unveiled at a "CREDICORP for All" event in Aba, Abia State, demonstrating credit access for various groups, including market women and transport operators.
• CREDICORP's broader programs cover financing for mobility, digital devices, energy solutions, home improvement, and life essentials, though not all are confirmed for SPARK specifically.
• The service is not yet fully operational nationwide but is expected to achieve wider availability before the end of 2026.

Consumer credit should not be an exclusive privilege but rather an accessible opportunity for every working Nigerian.

The Federal Government of Nigeria has introduced a new USSD-based credit service, designated as SPARK, aimed at providing consumer loans to Nigerians. This initiative, managed by the Nigerian Consumer Credit Corporation (CREDICORP), allows individuals to access financing using basic mobile phones, thereby removing the necessity for internet connectivity or smartphones. The service, which utilizes the USSD code *347*333#, was recently unveiled as a strategic move to broaden credit availability across the nation.

The launch of SPARK was a key feature at CREDICORP's "CREDICORP for All" showcase event, which took place in Aba, Abia State. This gathering convened a diverse group of participants, including beneficiaries, financial institutions involved in the program, local vendors, and government representatives. The event served as a platform to illustrate how consumer credit can bolster livelihoods and stimulate economic activities. Practical demonstrations included credit access for market women and traders, presentations on the YouthCred initiative for young Nigerians, and the display of credit-backed tricycles for transport operators. Locally assembled tricycles, made available through CREDICORP's Securing Consumer Access for Local Enterprises (S.C.A.L.E.) initiative, were also showcased.

CREDICORP's comprehensive consumer credit programs are structured around five primary areas, designed to improve access to essential goods, household equipment, and productive assets. These categories include mobility solutions, such as compressed natural gas (CNG) and electric vehicles; digital devices, including laptops, smartphones, and tablets; and energy solutions, encompassing generators and solar panels. Additionally, the programs cover home improvement items like furniture, household appliances, and building materials, alongside life essentials such as healthcare, apparel, food, and beverages. While these categories outline CREDICORP's overall consumer credit priorities, the current announcement does not confirm that all these listed goods and services are presently available for financing specifically through the SPARK service.

A core objective of the SPARK service is to serve first-time borrowers who may have limited or no formal credit history. By offering an accessible entry point to credit, the initiative seeks to assist these individuals in establishing repayment records. This process is intended to enhance their credit profiles over time, subsequently creating further opportunities for them to access a wider array of financial services in the future. The Nigerian Consumer Credit Corporation emphasizes that this approach will empower a broader segment of the population to participate in the formal financial system.

Uzoma Nwagba, the Managing Director and Chief Executive Officer of CREDICORP, articulated the core philosophy behind the initiative, stating that consumer credit should not be an exclusive privilege but rather an accessible opportunity for every working Nigerian. He underscored this vision during the Aba event, illustrating its practical application through providing credit for market women, offering a financial head start for young people, and enabling transport operators to acquire productive assets. Nwagba highlighted SPARK as a straightforward method for Nigerians to commence building their credit histories, thereby making credit work for the populace.

Chinenye Mba-Uzoukwu, the chief principal to Abia State Governor Alex Otti, affirmed the state government's commitment to fostering an environment conducive to business growth and investment. Mba-Uzoukwu noted that under Governor Otti's leadership, Abia State is actively establishing conditions that allow businesses to thrive and ensure that responsible consumer credit reaches a greater number of its residents. This collaborative effort between federal and state entities aims to integrate more citizens into the formal economy through expanded credit access.

Although the *347*333# USSD code for accessing the SPARK credit service has been unveiled, its full operational status nationwide is not yet confirmed. CREDICORP has indicated that the product is anticipated to achieve wider availability across Nigeria before the close of 2026. This phased rollout suggests a strategic approach to ensure the service's stability and reach, allowing for adjustments and expansions as it integrates into the national financial landscape. The Nigerian Consumer Credit Corporation continues to advise interested Nigerians to monitor for further updates regarding the service's broader deployment.

Financial institutions and lenders in Nigeria should monitor the full rollout and regulatory guidelines of the CREDICORP SPARK USSD credit service to ensure compliance and explore potential participation in this government-backed consumer lending initiative, which aims to expand credit access to a broader segment of the population. This development will impact consumer credit law, debt recovery practices, and credit reporting for participating entities.

Source: Original reporting via PUNCH Online