Nigeria to Launch National Credit Guarantee Company in May 2025 to Boost Access to Credit

Nigeria to Launch National Credit Guarantee Company in May 2025 to Boost Access to Credit

On Wednesday, President Bola Tinubu announced that Nigeria would establish a National Credit Guarantee Company in May 2025. This initiative is a key part of Tinubu’s economic reform agenda, designed to enhance access to credit for businesses and individuals across the country. The move aims to improve financial inclusion, promote economic growth, and address existing barriers to credit access, particularly for underserved groups such as women and youth.

Speaking on the new initiative, President Tinubu emphasized that the National Credit Guarantee Company would serve as a vital tool for expanding risk-sharing mechanisms between financial institutions and borrowers. He stated that the initiative would strengthen the confidence in Nigeria’s financial system, create greater access to credit, and help stimulate broader economic activity. “This initiative will help strengthen the confidence of the financial system, expand credit access, and support underserved groups such as women and youth,” Tinubu said in a statement.

The National Credit Guarantee Company will work in collaboration with several key government agencies, including the Bank of Industry, the Nigerian Consumer Credit Corporation, the Nigerian Sovereign Investment Authority, and the Ministry of Finance Incorporated. In addition to government agencies, the company will also engage with private sector players and multilateral organizations to ensure the success of the initiative.

Tinubu also highlighted that the National Credit Guarantee Company builds upon previous efforts, such as the establishment of the Nigerian Consumer Credit Corporation, launched eight months ago. This program was initially designed to enhance credit access for federal civil service employees but has since been expanded to include the general public. The Nigerian Consumer Credit Corporation aims to provide affordable credit products to employed Nigerians, further driving financial inclusion.

The creation of the National Credit Guarantee Company is part of a broader strategy by the Tinubu administration to encourage re-industrialization and elevate the standard of living for Nigerians. By increasing access to credit, the government hopes to fuel economic growth, promote entrepreneurship, and create more job opportunities across various sectors.

With the upcoming launch of this new initiative, Nigeria seeks to improve access to financial resources, especially for small and medium enterprises (SMEs), and foster an environment conducive to investment and growth.

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