In a move aimed at making air travel more accessible amidst rising costs, the Federal Government has decided to officially launch a national “Fly Now, Pay Later” scheme for domestic travelers.
The initiative, spearheaded by the Nigerian Consumer Credit Corporation (CREDICORP), marks a significant step in the government’s push to integrate consumer credit into the daily lives of Nigerians. By allowing citizens to spread the cost of airfare over several months, the government aims to cushion the effect of the high cost of living on the middle class and business travelers.
In a statement, CREDICORP said the programme is designed to be digital-first to remove the traditional bottlenecks of commercial banking. Travelers visit visaro.ng to select their domestic destination to access the credit. A 30% deposit is required upfront to secure the booking. The remaining 70% of the balance is spread across three monthly installments. The financing is powered by the fintech credit platform MyVisaro and backed by Alert Microfinance Bank.
While the government’s entry is a milestone, it arrives in an already buzzing Buy Now, Pay Later (BNPL) ecosystem. Private players have been laying the groundwork for years to provide these services. Fidelity Bank and FCMB offer travel financing with interest rates hovering around 2.92% monthly. CredPal and Kero Global Lendas provide flexible repayment windows for both domestic and international routes. These repayment periods sometimes stretch up to six months.
The Federal Government’s intervention adds weight and reach, potentially bringing these services to Nigerians who lack existing relationships with private banks.
The launch has sparked a national debate. Proponents argue that BNPL is a “silent revolution” that routes around Nigeria’s antiquated banking system, which often demands steep collateral and a formal employment history that most Nigerians don’t have.
However, critics and financial analysts urge caution. While the scheme solves the immediate problem of liquidity, it does not address the high cost of travel itself.
“The risk is that easy access to credit can lead to financial hardship if misused,” noted one financial analyst. “Borrowing for a flight you cannot afford in the long run is a dangerous path. Transparency in interest rates and repayment terms is vital.”
Nigeria is currently witnessing a shift where credit is becoming the bridge for everything from smartphones and electricity to education. While CREDICORP’s new scheme makes the “airline seat” the latest commodity available on credit, the broader challenge remains: reducing the cost of living, rather than just finding new ways to finance it.