Nigeria is set to establish a National Credit Guarantee Company in May to provide loans to businesses and individuals, President Bola Tinubu announced.

Nigeria plans to establish a National Credit Guarantee Company in May to provide loans to businesses and individuals, President Bola Tinubu announced in a speech on Wednesday.

Tinubu, who assumed office in May 2023, has focused on economic reforms, including expanding access to credit as a strategy to stimulate economic growth.

“To achieve this, the federal government will establish the National Credit Guarantee Company to expand risk-sharing instruments for financial institutions and enterprises,” Tinubu said.

The company will collaborate with key government institutions such as the Bank of Industry, the Nigerian Consumer Credit Corporation, the Nigerian Sovereign Investment Agency, and the Ministry of Finance Incorporated. It will also work with private sector players and multilateral institutions to ensure its success.

“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 stated.

This announcement builds on earlier efforts by Tinubu’s administration. Eight months ago, he launched the Nigerian Consumer Credit Corporation to improve access to credit for employed Nigerians. The rollout of the programme was phased, initially targeting federal civil service employees and later extending to the general public.