Nigeria plans to launch the National Credit Guarantee Co. (NCGC) by mid-2025 to boost access to credit for individuals and critical sectors of the economy, President Bola Tinubu announced in a New Year’s speech.
Why it matters
The initiative aims to strengthen confidence in the financial system, expand credit access, and support underserved groups like women and youth.
How it works
- NCGC will be a public-private partnership, with backing from institutions like the Bank of Industry and Nigeria’s Sovereign Investment Agency.
- It will be Nigeria’s second public credit company under Tinubu’s administration, following the Nigerian Consumer Credit Corp., which launched in 2023 with a $65 million grant.
The economic backdrop
- Nigeria is battling inflation at its fastest pace in almost 30 years, currently at 35%.
- Tinubu’s government aims to cut inflation to 15% by boosting food production and local manufacturing of essential goods.
State of the economy
Tinubu described the economic outlook as “positive and encouraging,” citing:
- Declining gasoline prices.
- Three consecutive quarters of trade surpluses.
- Strengthening of the naira against the dollar.
What’s next
NCGC is expected to begin operations by June 2025, a move poised to reshape credit access and economic stability in the country.
Source: Bloomberg
