Tinubu unveils a public-private credit company to drive inclusive financial access and strengthen Nigeria’s economy.
Abuja, (EPICSTORIAN) – Nigeria is set to establish the National Credit Guarantee Company, a state-backed initiative aimed at expanding access to credit for individuals and key economic sectors.
President Bola Tinubu announced the plan during a New Year’s speech, highlighting the project as a cornerstone of his administration’s economic reforms.
The National Credit Guarantee Company is aimed at supporting under-served Group.
The new company will operate as a public-private partnership, bringing together private investors and state institutions, including the Bank of Industry and Nigeria’s Sovereign Investment Agency. According to Tinubu, the entity is expected to commence operations by the end of June 2025.
Strengthening Financial Confidence
“This initiative will strengthen the confidence of the financial system, expand credit access, and support under-served groups such as women and youth,” President Tinubu said during his address.
The program aims to address critical barriers to credit, particularly for marginalized groups and industries that are vital to Nigeria’s economic growth. Once operational, the company will be the second public credit entity launched under Tinubu’s administration, following the Nigerian Consumer Credit Corp.
Established with a 100 billion naira ($65 million) grant, the Nigerian Consumer Credit Corp. has primarily focused on providing loans to government employees. Tinubu emphasized that the new company would broaden access to credit beyond government staff, targeting sectors critical to the economy.
Positive Economic Outlook
President Tinubu expressed optimism about Nigeria’s economic trajectory in 2025, citing several positive indicators. “The outlook for the economy this year is positive and encouraging,” he said.
Tinubu pointed to declining gasoline prices, three consecutive quarters of trade surpluses, and the naira’s strengthening against the dollar as signs of recovery.
He also reaffirmed the government’s commitment to curbing inflation, which is currently at 35%, the highest level in almost 30 years. Tinubu outlined strategies to reduce inflation to 15% by the end of the year, focusing on increased food production and the domestic manufacturing of essential drugs and medical supplies.
Tackling Economic Challenges
The creation of the National Credit Guarantee Co. comes at a critical time for Nigeria, as the country continues to grapple with economic challenges, including inflation and limited credit availability.
By combining private investment with public sector oversight, the initiative seeks to bridge the financing gap for individuals and businesses while fostering economic stability.
Experts believe the program could significantly enhance Nigeria’s financial ecosystem. “Expanding credit access is essential for stimulating growth in under-served sectors and building a resilient economy,” a financial analyst told Bloomberg.
Tinubu’s administration has prioritized economic reforms since his inauguration in May 2023, including efforts to attract foreign investment and stabilize the currency. The launch of the new credit company represents a continuation of these reforms, offering hope for improved financial inclusion and economic diversification.
