Nigeria will establish a national credit guarantee company in May to lend to businesses and individuals, President Bola Tinubu said in a speech on Wednesday.
Mr Tinubu, who will take office in May 2023, campaigned on economic reforms, including expanding access to credit to boost economic growth.
“To achieve this, the Federal Government will establish the National Credit Guarantee Corporation to expand risk-sharing instruments for financial institutions and businesses.
Mr Tinubu said the company would work in partnership with government institutions such as the Bank of Industry, the Nigerian Consumer Credit Corporation, the Nigerian Sovereign Investment Agency and the Ministry of Finance, as well as with the private sector and multilateral institutions.
“This initiative will build confidence in the financial system, expand access to credit and support underserved groups such as women and youth. It will promote growth, reindustrialization and improved living standards of our citizens” , Mr Tinubu said.
Eight months ago, Mr. Tinubu launched the Nigerian Consumer Credit Corporation to improve access to credit for Nigerian workers.
Implementation of the program has been planned in stages, starting with federal public service employees and now the general public.
