In a bid to tackle rising food prices and promote local manufacturing of essential drugs, President Bola Tinubu has announced the establishment of a National Credit Guarantee Company.
The new initiative, aimed at boosting economic growth and reducing inflation, is expected to begin operations by the end of the second quarter of 2025.
Tinubu made the announcement in his New Year address, outlining the government’s plans to help alleviate hardship faced by Nigerians.
The President emphasized the company’s role in expanding access to credit for individuals and businesses, particularly under-served groups such as women and youth.
It will also serve to strengthen confidence in the financial system and promote risk-sharing among financial institutions.
“Though 2024 posed numerous challenges to our citizens, I am confident that the New Year will bring brighter days. Economic indicators point to a positive outlook for our nation, and with this new initiative, we aim to lower food costs and reduce inflation from its current rate of 34.6% to 15%,” said Tinubu.
The new company will be a partnership between government institutions like the Bank of Industry (BOI), Nigerian Consumer Credit Corporation (NCCC), Nigerian Sovereign Investment Agency (NSIA), the Ministry of Finance, as well as the private sector and multilateral institutions.
The goal is to drive growth, industrialization, and improve the living standards of Nigerians.
Tinubu also called for the cooperation of states in embracing the Compressed National Gas (CNG) programme to reduce transportation costs.
Furthermore, he reaffirmed his commitment to holding a youth conference in the first quarter of 2025, a promise made following the #EndBadGovernance protests.
The President’s address was met with criticism from the opposition Peoples Democratic Party (PDP), which expressed concerns over the lack of immediate and concrete steps in his message.
The PDP urged Tinubu to address rising fuel prices, widespread hunger, insecurity, and corruption in the country.
It also challenged the President to account for funds generated from the removal of fuel subsidies and to take action against alleged corruption in government.
Despite the criticism, Tinubu urged Nigerians to remain hopeful and united, pledging to continue reforms that will foster growth and prosperity.
He also announced the launch of the National Values Charter and a national orientation campaign to promote patriotism and shared values among citizens.
