Nigeria's National Credit Guarantee Company: A Boost for Economic Growth

Nigeria plans to establish a National Credit Guarantee Company to provide financial support to businesses and individuals, announced by President Bola Tinubu. This move aims to enhance credit access and economic growth, partnering with government and private sectors. It focuses on underserved groups, promoting re-industrialization.

Nigeria is on the brink of establishing a National Credit Guarantee Company in May, according to President Bola Tinubu's recent announcement. The initiative aims to provide much-needed financial support to businesses and individuals, marking a significant step in the country's economic reform agenda.

President Tinubu, who assumed office in May 2023, has marked expanding credit access as a cornerstone of his economic policies, targeting to bolster economic growth. The newly proposed company will serve as a risk-sharing mechanism for financial institutions and enterprises, in collaboration with entities like the Bank of Industry and Nigerian Sovereign Investment Agency.

This initiative is geared towards strengthening the financial system's confidence and widening credit access, particularly benefitting underserved demographics like women and youth. With such strategic partnerships and a focus on re-industrialization, Tinubu asserts that this move will elevate living standards across Nigeria.

(With inputs from agencies.)