Abuja, Nigeria — In a move designed to revolutionize financial access and stimulate economic growth, President Bola Tinubu announced on Wednesday that Nigeria will establish a National Credit Guarantee Company (NCGC) in May 2025. This initiative is a cornerstone of Tinubu’s economic reform agenda, aimed at enhancing financial inclusion and driving industrial development in Africa’s largest economy.
“This initiative will strengthen the confidence of the financial system, expand credit access, and support underserved groups such as women and youth,” Tinubu said during a press briefing at the Presidential Villa in Abuja. The president emphasized that the NCGC would address longstanding challenges in Nigeria’s credit system by creating robust risk-sharing mechanisms for financial institutions.
The NCGC will collaborate with a consortium of government agencies, including the Bank of Industry, the Nigerian Consumer Credit Corporation, the Nigerian Sovereign Investment Agency, and Ministry of Finance Incorporated. Additionally, private sector players and multilateral organizations are expected to participate in the initiative, ensuring broad-based support and expertise.
This initiative follows the launch of the Nigerian Consumer Credit Corporation (NCCC) eight months ago. Initially designed to provide credit to federal civil service employees, the NCCC has since expanded to cater to the general public, signaling a growing commitment to financial accessibility.
The new credit guarantee framework aims to make financial resources more accessible to businesses and individuals across Nigeria, particularly those traditionally underserved by the banking sector. Women and youth—groups often excluded from formal credit systems—are expected to benefit significantly from this reform.
“Financial inclusion is not just an economic imperative; it is a social necessity,” Tinubu said, underlining the importance of reducing barriers to credit as a means of empowering marginalized groups and fostering economic equity.
President Tinubu also highlighted that the establishment of the NCGC is part of a broader vision to re-industrialize Nigeria. By improving credit availability, the government hopes to catalyze the growth of small and medium-sized enterprises (SMEs), spur innovation, and create jobs, thereby improving living standards for millions of Nigerians.
Economic analysts have welcomed the initiative, noting that access to credit is a critical driver of economic growth and social mobility. However, some have urged caution, emphasizing the need for transparent governance and effective implementation to ensure the program’s success.
As the May 2025 launch date approaches, the government is expected to unveil additional details about the NCGC’s operations and its impact on the financial ecosystem. Stakeholders are optimistic that the initiative will lay the groundwork for a more inclusive and dynamic economy.
For now, Nigerians and international observers alike will be watching closely as the Tinubu administration takes another significant step in its ambitious journey toward economic transformation.
