Tinubu's National Credit Company Plan Set To Revolutionize Business Financing In Q2 2025

Discover how President Tinubu’s National Credit Guarantee Company (NCGC) aims to boost access to financing for businesses, support underserved groups, and stabilize Nigeria’s economy.

President Bola Tinubu has announced plans to establish the National Credit Guarantee Company (NCGC) by Q2 2025, a groundbreaking initiative designed to expand risk-sharing for financial institutions and ease business financing challenges in Nigeria.

The NCGC will be a collaborative effort involving key government institutions like the Bank of Industry, the Nigerian Consumer Credit Corporation, the Nigerian Sovereign Investment Agency, and the Ministry of Finance Incorporated, alongside private sector stakeholders and multilateral organizations.

Relief for Businesses Amid High Interest Rates
Nigerian businesses have faced difficulties accessing financing at favorable rates, with the Central Bank of Nigeria’s (CBN) monetary policy committee setting a 27.50% interest rate benchmark in late 2024. This has pushed lending rates to nearly 35%, placing significant financial strain on enterprises.

President Tinubu emphasized that the NCGC will address these challenges by expanding credit access, strengthening the financial system, and driving industrial growth.

“This initiative will foster confidence in the financial system, support underserved groups such as women and youth, and lead to re-industrialization and improved living standards,” Tinubu stated.

Economic Stability and Growth Prospects for 2025
Reflecting on 2024’s economic hurdles, President Tinubu projected a brighter outlook for 2025, highlighting increasing foreign reserves, the stabilization of the Naira, and a consistent decline in fuel prices.

Other positive indicators include record growth in the stock market, generating trillions of naira in wealth, and rising foreign investments signaling renewed economic confidence. However, Tinubu acknowledged that the high cost of food and essential drugs remains a pressing concern.

To address this, the government is committed to:

Boosting food production.
Promoting local manufacturing of essential drugs.
Expanding access to credit for individuals and businesses across critical economic sectors.

Collaboration Across Government Levels
Tinubu urged state governors and local council chairpersons to collaborate with the federal government in leveraging emerging opportunities in agriculture, livestock, and tax reforms to drive national progress.

Expert Opinions
Economists have called for immediate measures to stimulate the manufacturing and SME sectors, which have been adversely affected by high interest rates. Muda Yusuf, former Director-General of the Lagos Chamber of Commerce and Industry, stated:
“Manufacturers and investors need oxygen and stimulus, not policies that worsen an already challenging economic situation.”

With the NCGC initiative and other reforms, Tinubu’s administration aims to stabilize the economy, improve living standards, and restore business confidence across Nigeria.