The Federal Government’s new USSD credit initiative promises to bring first-time borrowers into Nigeria’s formal lending system. But with loan costs, repayment terms and nationwide availability still unclear, the real test will be whether ordinary Nigerians can afford the debt.
By Atlantic Post Business and Investigations Desk
A Nigerian trader without a smartphone could soon have a new route into the formal credit market. A young graduate with no borrowing history could begin building a financial record. A household struggling to purchase essential equipment might find another way to spread the cost.
All three possibilities sit behind a short USSD code: *347*333#.
The Federal Government, through the Nigerian Consumer Credit Corporation (CREDICORP), has introduced SPARK, an entry-level credit product designed to help Nigerians access loans through basic mobile phones without an internet connection.
Its ambition is significant. For people excluded from traditional lending because they lack collateral, conventional employment records or a formal credit history, the ability to initiate a credit application without a smartphone could remove an important barrier.
But there is a more difficult question behind the announcement.
Can Nigerians who struggle to meet everyday expenses afford another repayment obligation?
That question deserves as much attention as the technology.
The SPARK pilot was unveiled at CREDICORP’s CREDICORP for All showcase in Aba, Abia State, on 28 October 2026. The event brought together financial institutions, local vendors, government representatives and more than 1,000 residents to demonstrate consumer-credit opportunities.
Although the USSD code has been publicised, the product is expected to become more widely available before the end of 2026. The announcement should therefore not be mistaken for confirmation that every Nigerian can already obtain a loan through the service.
The distinction between a pilot and a fully operational nationwide lending service matters. It is also the first issue prospective borrowers should understand.
SPARK: What the new loan service is designed to do
SPARK is intended to provide an entry point into formal borrowing, particularly for people who have never accessed conventional consumer credit.
Unlike smartphone-based loan applications, USSD services operate through mobile network menus. Users do not need to download an application, own an internet-enabled device or maintain a data subscription to navigate the service.
The idea is to make the first step towards formal credit more accessible.
CREDICORP says responsible borrowing and repayment will help beneficiaries establish credit histories. Over time, those records could strengthen their financial profiles and improve their prospects of accessing other financial services.
The corporation explained:
“By establishing repayment records through responsible borrowing, beneficiaries can progressively improve their credit profiles and create pathways to greater financial opportunities.”
This is an important distinction. SPARK is not simply about giving people access to money. It is also an attempt to bring more Nigerians into a financial system where their borrowing and repayment behaviour can be recorded.
The system could benefit people whose lack of credit history has previously made lenders reluctant to extend loans.
But the existence of a repayment record does not automatically guarantee a higher credit score, cheaper borrowing or approval for a larger loan. Those outcomes depend on the quality of the information reported, lenders’ assessment criteria and the borrower’s subsequent repayment behaviour.
The economic problem SPARK is trying to solve
Nigeria’s consumer-credit problem is larger than the number of people who own bank accounts.
Millions of adults participate in the financial system without having meaningful access to affordable formal loans.
The 2026 Access to Financial Services in Nigeria survey by Enhancing Financial Innovation and Access (EFInA) illustrates the gap.
Financial inclusion increased from 74 per cent in 2023 to 79 per cent in 2026. Yet formal borrowing rose from just six per cent to 10 per cent over the same period.
In other words, being financially included does not necessarily mean being able to secure a regulated loan.
The survey also found that 64 per cent of Nigerian adults use digital financial services. This suggests that the country has an expanding digital-finance infrastructure through which products such as SPARK could reach potential customers.
But access is only part of the problem.
A separate examination of the 2026 survey findings found that 40.8 per cent of formal borrowers used loans mainly for consumption and coping needs, compared with 31.7 per cent in 2023.
Meanwhile, the proportion using formal loans for productive enterprises fell from 40.2 per cent to 34.3 per cent.
The survey covered 18,679 adults across Nigeria’s 36 states and the Federal Capital Territory between April and June 2026, under the oversight of the National Bureau of Statistics.
Perhaps more troubling, 45.8 per cent of formal borrowers reported repayment difficulties, while 83.8 per cent said they remained under financial strain.
These figures reveal a difficult environment for any new consumer-lending initiative.
Nigeria needs more accessible credit. But it also needs an economy in which borrowers have sufficient and reasonably predictable incomes to meet their obligations.
Without that balance, financial inclusion can become an additional channel through which household financial pressure is transferred into the future.
A loan market growing faster than household resilience?
CREDICORP’s wider programme covers five major categories of consumer credit.
They are:
Mobility: Compressed natural gas vehicles and electric vehicles.
Digital devices: Laptops, smartphones and tablets.
Energy solutions: Generators and solar panels.
Home improvement: Furniture, household appliances and building materials.
Life essentials: Healthcare, apparel, food and beverages.
These categories indicate the corporation’s broader consumer-credit priorities. They should not be interpreted as confirmation that every product in the five categories is currently available through SPARK.
There is an important economic distinction between borrowing to acquire an income-generating asset and borrowing to meet recurring household consumption.
A solar installation, for instance, could reduce a small business’s electricity costs and improve its operating capacity. A laptop could enable a young professional to earn income through digital work.
A vehicle used for commercial transportation could generate revenue from which repayments are made.
Food and other recurring household necessities present a different challenge. Once consumed, they do not normally produce a new stream of income from which the borrower can repay the loan.
This does not mean financing essential consumption is inherently wrong. Emergency healthcare, food shortages and other household needs can justify short-term borrowing.
But the repayment structure must reflect the purpose of the loan and the financial circumstances of the borrower.
Lending money for a household emergency without understanding how that household will repay it risks turning temporary hardship into longer-term indebtedness.
That is why the distinction between productive credit and survival borrowing should be central to the evaluation of SPARK.
CREDICORP’s ₦53.5 billion milestone
The corporation says it has facilitated more than ₦53.5 billion in consumer credit for over 351,000 Nigerians since commencing operations.
Women account for approximately 59 per cent of its reported beneficiaries.
The figures suggest that CREDICORP has already established a significant presence in Nigeria’s developing consumer-credit market.
The corporation is also working towards the Federal Government’s objective of extending consumer-credit access to at least 50 per cent of working Nigerians by 2030.
At its February 2026 board inauguration, Vice-President Kashim Shettima disclosed that CREDICORP had facilitated more than ₦37 billion in consumer credit for over 200,000 Nigerians in its first year of operations. He said more than half of those beneficiaries were accessing formal credit for the first time.
The latest figures indicate expansion beyond that earlier milestone.
Nevertheless, the amount of credit facilitated is not, on its own, a complete measure of economic impact.
A proper assessment would require information on the number of loans successfully repaid, the proportion of borrowers taking repeat loans, default rates, the distribution of loan values and the economic outcomes recorded by beneficiaries.
It would also be useful to know how much of the credit has financed productive assets and how much has supported household consumption.
The public deserves more than a headline figure for the volume of loans facilitated. It needs evidence that those loans are improving financial security rather than merely increasing borrowing.
The question of who actually lends the money
One issue that deserves particular attention is the structure of CREDICORP’s lending arrangements.
The corporation’s public description of its operating model identifies three major responsibilities: providing wholesale funding, offering credit guarantees to participating financial institutions and strengthening Nigeria’s credit infrastructure.
Its published application process also directs consumers to explore available credit options, select a participating financial institution, apply through that institution and receive approved credit.
This arrangement raises important questions about SPARK.
Which financial institution will actually provide the loans?
Who will assess applications and determine eligibility?
Who will set the interest rate, repayment period and applicable charges?
Which institution will collect repayments, manage defaults and address complaints?
The answers matter because consumers should know precisely who their creditor is before accepting a loan.
CREDICORP’s role in facilitating consumer credit does not remove the need for clear disclosure of the institution responsible for the individual lending agreement.
The corporation should make the lending partnerships behind SPARK publicly identifiable, alongside the conditions governing access to the product.
Without that information, the promise of a simple USSD application risks creating a situation in which borrowers understand how to request credit but do not fully understand the financial obligations attached to it.
The missing information borrowers need
As at 2 November 2026, public announcements introducing SPARK have not provided a comprehensive schedule of its lending terms.
Several details remain essential:
Loan limits: What is the minimum and maximum amount a first-time borrower can access?
Interest rates: What is the annual percentage rate, and how much will the borrower repay in total?
Repayment periods: Will loans be repayable weekly, monthly or over another agreed period?
Eligibility: Will applicants need a regular salary, a bank account, a BVN, a NIN, guarantors or other documentation?
Credit assessment: How will SPARK assess applicants without established credit histories?
Default conditions: What penalties, additional fees or recovery procedures will apply when a borrower misses a payment?
Credit reporting: Which credit bureau or bureaus will receive the repayment information, and how will borrowers correct inaccurate records?
These are not administrative details that can be postponed until after nationwide expansion.
They are the information consumers need before making a borrowing decision.
Why credit histories matter
Nigeria already has an established credit-reporting infrastructure.
The Credit Bureau Association of Nigeria identifies three credit bureaus operating in the country: CreditRegistry, FirstCentral Credit Bureau and CRC Credit Bureau.
Credit bureaus collect information on loans, repayment behaviour, outstanding balances and other relevant financial records.
Lenders can use this information when assessing applications and determining the risks associated with extending credit.
For someone who has never borrowed formally, a well-managed first loan could therefore be an important financial milestone.
A history of timely repayments may demonstrate reliability and help lenders make more informed decisions.
But credit reporting also creates responsibilities.
Borrowers must understand what information is collected, how it is shared, how long it is retained and how incorrect information can be challenged.
The opportunity to establish a credit history should not come at the expense of privacy or fair treatment.
Nigeria’s digital lending rules create another accountability test
SPARK is entering a market in which consumer protection has become an important regulatory concern.
The Federal Competition and Consumer Protection Commission introduced the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations in 2025.
The rules were designed to address problems associated with digital lending, including exploitative practices, harassment, privacy violations and unfair debt-recovery methods.
Their implementation was temporarily suspended following an interim court order in April 2026.
But on 20 July 2026, the Federal High Court in Lagos dismissed the challenge brought by the Wireless Application Service Providers Association of Nigeria and discharged the order restraining implementation.
The FCCPC subsequently announced that the regulations were once again fully operational and enforceable.
The commission’s published guidance requires covered non-bank lenders to provide clear loan agreements, disclose interest rates, fees and repayment schedules, comply with data-protection requirements and meet applicable registration obligations.
The rules do not cover deposit money banks, which are regulated under the Banks and Other Financial Institutions Act. The precise regulatory responsibilities for SPARK will therefore depend on the identity of the actual lending institution and the structure of the product.
But the underlying consumer-protection principles remain essential.
A loan accessed through a basic phone should not expose a borrower to confusing charges, unauthorised data sharing, intimidation or abusive recovery practices.
The FCCPC has made clear that consumers should understand their obligations, verify the status of lenders where applicable and report harassment or privacy violations through its official complaint channels.
What CREDICORP’s leadership says
At the Aba showcase, CREDICORP Managing Director and Chief Executive Officer Uzoma Nwagba explained the corporation’s ambition to extend consumer credit beyond the traditional banking population.
He said:
“Consumer credit should not be a privilege reserved for a few. It should be an opportunity available to every working Nigerian.
“Today in Aba, Abia State, in Nigeria’s South-East, we are demonstrating what that means in practical terms: credit for market women, a financial head start for young people, productive assets for transport operators, and with SPARK, a simple way for Nigerians to begin building their credit histories. This is how we make credit work for the people.”
Representing Abia State Governor Alex Otti, the governor’s Chief Principal, Chinenye Mba-Uzoukwu, said the state was working to create conditions that would support business growth and responsible consumer lending.
“Under Governor Alex Otti’s leadership, Abia State is putting the conditions in place for businesses to grow, investments to flourish and responsible credit to reach more of our people.
“By strengthening the enabling environment for enterprise, we are making it easier for initiatives such as CREDICORP to support traders, young people and hardworking families across the state.”
Armstrong Ume Takang, Managing Director of the Ministry of Finance Incorporated and a CREDICORP board member, also highlighted the potential economic value of the initiative.
“Through CREDICORP, we are seeing how well-structured public investment can stimulate enterprise, support local manufacturers and deliver measurable economic impact directly to citizens,” Takang said.
These statements capture the policy ambition behind the initiative. The next stage is to demonstrate that the ambition translates into affordable, transparent and measurable outcomes.
What Nigerians should know before using SPARK
The publicised USSD code is *347*333#.
It has been reported as the route for accessing SPARK without a smartphone or internet connection. But the product was introduced through a pilot, and broader availability is expected before the end of 2026.
Prospective borrowers should confirm availability and application instructions through CREDICORP’s official channels before providing personal or financial information.
They should also understand that SPARK is a credit service, not a government grant.
Anyone receiving a loan will be required to repay it according to the agreement.
Before accepting an offer, borrowers should establish the identity of the actual lender, the total repayment amount, the applicable fees, the repayment dates and the consequences of default.
They should never pay an unofficial agent an upfront fee in exchange for a guaranteed loan approval or disclose sensitive banking credentials to an unverified contact.
The USSD code itself should not be treated as proof that an individual has been approved for credit.
The real test is whether credit improves lives
SPARK could become an important addition to Nigeria’s financial-inclusion infrastructure.
Its USSD format offers a practical alternative for people who lack smartphones, while its emphasis on building formal credit histories could help address the information gap that often discourages lenders from extending credit to first-time borrowers.
But Nigeria’s wider economic circumstances cannot be ignored.
A country in which only 10 per cent of adults borrow formally, while a significant proportion of existing formal borrowers report repayment difficulties, needs more than additional routes to debt.
It needs responsible lending, better incomes, productive investment and financial products designed around the realities of household cash flow.
CREDICORP has reported more than ₦53.5 billion in facilitated consumer credit and over 351,000 beneficiaries. Those numbers represent a substantial policy undertaking. The next measure of success should be the quality of the outcomes.
How many borrowers will establish positive credit histories?
How many will use the loans to increase their earnings or reduce household costs?
How many will complete repayment without financial distress?
And how many will be pushed into further borrowing simply to meet existing obligations?
These are the questions that should accompany the nationwide expansion of SPARK.
The Federal Government may have found a way to make applying for credit as simple as dialling a number. But making repayment manageable requires something more difficult: a lending system that understands the financial realities of the people it is designed to serve.
A loan code can open the door to finance. Only responsible credit can make sure that door leads to greater economic security.
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