The Minister of Budget and Economic Planning, Atiku Bagudu, revealed that the federal government has earmarked a total of N160 billion in the 2024 national budget for consumer credit and the implementation of a student loan scheme. Bagudu made this announcement during a press briefing held yesterday in Abuja.
Out of the allocated amount, N100 billion has been designated for consumer credit aimed at revitalizing the manufacturing sector and enhancing access to goods and services for Nigerians. Describing consumer credit as a catalytic fund expected to stimulate growth, Bagudu emphasized its significance in supporting consumer capacity and boosting economic activity.
Additionally, the minister disclosed that N50 billion from the signed budget and N10 billion from a supplementary budget have been allocated to the student loan scheme. Bagudu stressed the importance of providing students with alternative financial options to support their education.
Despite the allocation, Bagudu acknowledged that disbursement has been delayed due to the sluggishness of the nation’s procurement system, which typically takes a minimum of three months to complete before budget item implementation. He expressed optimism that facilitating access to credit for goods and services would spur economic growth by enabling more individuals to make purchases over time.
Addressing concerns about budget manipulation, Bagudu clarified that while the National Assembly has the final authority in appropriation, adjustments made by lawmakers merely reflect the democratic process of budgetary decision-making. He emphasized that additions, subtractions, or new project inclusions are inherent to the appropriation process and are not necessarily indicative of malfeasance.
Furthermore, Bagudu outlined the government’s efforts to de-risk the agricultural sector by establishing a N100 billion agricultural development fund aimed at attracting private sector financing. He reiterated the importance of consumer credit as a tool to drive economic activity and expand access to goods and services for a broader segment of the population.
In response to inquiries during the briefing, Bagudu emphasized the pivotal role of consumer credit in stimulating economic activity, underscoring its potential to enhance access to goods and services for Nigerians who may otherwise struggle to afford them outright.
