President Bola Tinubu announced on Wednesday that Nigeria will establish a National Credit Guarantee Company in May to improve financing options for consumers and businesses.
This initiative is part of Tinubu’s economic reform plan, which he highlighted during his New Year message, aiming to increase access to finance and drive economic growth.
“The federal government will establish the National Credit Guarantee Company to expand risk-sharing instruments for financial institutions and enterprises,” Tinubu said on Wednesday.
Initiative to enhance financial inclusion
Tinubu emphasised that this initiative will increase trust in the financial system, increase access to credit, and give priority to underserved groups, such as women and youth.
The company will work with organisations like the Bank of Industry, Nigerian Consumer Credit Corporation, Nigerian Sovereign Investment Agency, and Ministry of Finance Incorporated, as well as private sector stakeholders and multilateral institutions.
“It will drive growth, re-industrialization, and better living standards for our people,” he stated.
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Extension of Nigerian Consumer Credit Corporation
This declaration is an extension of Tinubu’s earlier initiatives, such as the establishment of the Nigerian Consumer Credit Corporation eight months prior.
The organisation was founded to improve credit availability for Nigerians in employment. Its implementation was carried out gradually, beginning with federal civil service employees and currently reaching the broader public.