The Nigerian government has announced plans to expand credit access for citizens with the creation of a National Credit Guarantee Company. President Bola Tinubu announced the plan in his New Year message, indicating the government’s desire to provide loans and facilities to businesses and individuals in the country.
The National Credit Guarantee Company will work in conjunction with other government agencies like the Bank of Industry, Nigerian Consumer Credit Corporation, the Nigerian Sovereign Investment Agency, and Ministry of Finance Incorporated, as well as the private sector and multilateral institutions, to expand credit access and support business owners.
Also, the company will seek to strengthen the financial system while expanding the risk-sharing instruments for financial institutions and enterprises.
The new credit company is going to take-off in the second quarter of the year and will help achieve the government’s economic reforms and growth plans for citizens and businesses with little or no access to finances.
Also, the new company is coming on board at a time the country reels from the effects of Tinubu’s economic reforms particularly soaring inflation and rising cost of living. The government is hoping to create a seamless access to loans and other financial assistance that will ease the people’s burden and boost economic growth.
