By Victor Akan
Nigeria will establish a National Credit Guarantee Company in May 2025 to enhance lending to businesses and individuals, President Bola Tinubu announced on Wednesday. The initiative is part of Tinubu’s broader economic reforms aimed at expanding credit access and driving economic growth.
Boosting confidence in the financial system
Speaking on the plan, Tinubu stated, ‘The federal government will establish the National Credit Guarantee Company to expand risk-sharing instruments for financial institutions and enterprises.’
The company will collaborate with key government agencies such as the Bank of Industry, Nigerian Consumer Credit Corporation, Nigerian Sovereign Investment Agency, and Ministry of Finance Incorporated. It will also engage with private sector stakeholders and multilateral institutions to strengthen financial confidence and broaden credit availability.
‘This initiative will strengthen the confidence of the financial system, expand credit access, and support under-served groups such as women and youth. It will drive growth, re-industrialisation, and better living standards for our people,’ Tinubu emphasised.
Building on previous initiatives
The announcement comes eight months after the launch of the Nigerian Consumer Credit Corporation (NCCC), which aims to improve access to loans for employed Nigerians. Initially targeting federal civil service employees, the programme has since expanded to the general public.
Local residents have expressed optimism about the initiative. A Lagos-based entrepreneur told Reuters, ‘If properly implemented, this credit guarantee company could be a game-changer for small businesses like mine. Access to affordable credit has been a major hurdle.’
A step towards economic transformation
Tinubu’s administration has prioritised economic reforms, focusing on policies to re-industrialise Nigeria and improve living standards. The National Credit Guarantee Company is expected to address systemic challenges in accessing credit, particularly for marginalised groups such as women and youth.
By fostering partnerships and enhancing financial security, this initiative could mark a turning point in Nigeria’s economic trajectory, setting the stage for sustainable growth and development.
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