The federal government has allocated a total of N160 billion for consumer credit and the implementation of a student loan scheme in the 2024 national budget.
Minister of Budget and Economic Planning, Atiku Bagudu, revealed this during a recent press briefing in Abuja. He disclosed that N100 billion has been dedicated to consumer credit to rejuvenate the manufacturing sector, providing goods and services to Nigerians and enhancing consumer capacity. This consumer credit initiative is described as a catalytic fund expected to foster growth.
Bagudu also stated that N50 billion and N10 billion have been allocated in the main budget and supplementary budget, respectively, for the student loan scheme. “We believe our students should have an additional option,” he remarked.
Regarding the implementation of the loan scheme, Bagudu mentioned ongoing consultations with relevant stakeholders.
He cited delays in disbursement due to the nation’s slow procurement system, which typically takes at least three months to complete before implementing budgetary items. Senator Bagudu expressed his belief that the economy would benefit if more people could gradually pay for goods and services.
Addressing concerns about budget manipulation, Bagudu clarified that adjustments made by lawmakers resulted in the proposed bill amount increasing from President Bola Tinubu to N28.7 trillion, which was subsequently signed by the President.
“In fact, the National Assembly has the final say on appropriation,” Bagudu emphasized, adding that discussions around padding often carry negative connotations. He stressed that appropriation involves either adding or subtracting funds, agreeing to presented proposals, or introducing new projects—a reflection of democracy’s choices.
Senator Bagudu also highlighted the government’s initiative to mitigate risks in the agricultural sector by establishing a N100 billion agricultural development fund to attract private sector investment.
“We believe consumer credit is a crucial tool to stimulate economic activity and provide access to goods and services for many Nigerians who may not afford them upfront,” he remarked during the briefing.
