President Bola Tinubu has reaffirmed his administration’s plan to move Nigeria towards a credit-based economy, saying new financing institutions are being developed to make credit more accessible to workers, students and businesses.
Tinubu made this known in a statement posted on his verified X account on Monday, where he recalled his promise to establish a loan guarantee scheme to help small businesses overcome barriers to accessing finance.
According to the President, easier access to credit would enable workers to meet immediate family needs and repay over time, while allowing businesses to invest in expansion based on expected future income.
“When I sought your mandate, I promised to move Nigeria towards a credit-based economy and to establish a loan guarantee scheme that would help small businesses overcome the barriers that keep them from finance,” Tinubu said.
He explained that the government had been building institutions to support the credit system, including the Nigerian Consumer Credit Corporation, known as CREDICORP, which provides consumer credit to working Nigerians.
He also pointed to the Nigerian Education Loan Fund, NELFUND, which provides financing for students, while the Bank of Industry and Development Bank of Nigeria continue to provide funding to businesses.
Tinubu said the National Credit Guarantee Company was created to address one of the major obstacles facing businesses seeking loans, particularly those without sufficient collateral or established credit histories.
Recent figures released by the President showed that the NCGC had issued ₦21.59 billion in guarantees, helping participating financial institutions extend ₦46.95 billion in loans to 67,512 borrowers across 25 states and the Federal Capital Territory.
The President said 11,374 women were among the beneficiaries, while 33.5 per cent of the borrowers were first-time formal borrowers.
He added that the credit initiatives were aimed at widening access to finance and creating opportunities for Nigerians to invest, expand businesses and participate more actively in the formal credit system.
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