Nigeria to launch new state-owned company to expand credit access

Nigeria will launch a new company dedicated to increasing access to credit for individuals and critical sectors of the economy, President Bola Tinubu said.

The National Credit Guarantee Co. will be comprised of private investors and government institutions including the Bank of Industry and Nigeria’s Sovereign Investment Agency, he said in a New Year’s speech. The company is expected to start operations by the end of June.

“This initiative will strengthen the confidence of the financial system, expand credit access, and support under-served groups such as women and youth,” he said.

Once it’s been launched, the entity will be the second public credit company targeted at individuals since Tinubu came to power in May 2023. The Nigerian Consumer Credit Corp., established with a grant of 100 billion naira ($65 million), has been providing credits to mostly government employees as the country battles to rein in inflation accelerating at the fastest pace in almost three decades.

Tinubu said the outlook for the economy this year is “positive and encouraging,” citing declining gasoline prices, three consecutive quarters of trade surpluses and the naira’s recent strength against the dollar.

He reaffirmed the government’s commitment to reducing inflation from 35% to 15% this year through increased food production and the local manufacturing of essential drugs and other medical supplies.