Nigeria’s president, Bola Tinubu, has announced plans to significantly enhance credit access for both individuals and critical sectors, particularly Small and Medium Enterprises (SMEs), in a bid to strengthen the nation’s economy. In a New Year’s address to the nation, Tinubu outlined his administration’s commitment to addressing the financial barriers that have long constrained business growth and job creation.
Access to credit has remained a significant challenge in Nigeria, especially for SMEs, which are often the backbone of the country’s economy. The President acknowledged that these businesses face major obstacles in securing financial support, a limitation that stifles their growth potential.
To address this, President Tinubu revealed that the Federal Government will establish the National Credit Guarantee Company, an initiative designed to offer risk-sharing mechanisms for financial institutions. The company will aim to encourage lending by mitigating perceived risks, thus expanding credit access to underserved businesses.
“The company is expected to begin operations by the end of the second quarter of 2025,” the President confirmed. He highlighted that the initiative will be a collaborative effort involving key governmental institutions like the Bank of Industry, the Nigerian Sovereign Investment Authority, the Ministry of Finance Incorporated, as well as private-sector partners and international institutions.
Tinubu emphasized that the National Credit Guarantee Company will not only increase access to credit but will also support underrepresented groups, including women and youth, enabling them to participate more actively in the economy. He further assured Nigerians that the initiative would contribute to the country’s broader economic goals by driving industrial growth and improving living standards.
“The initiative will be a catalyst for re-industrialization, economic expansion, and better livelihoods for Nigerians,” Tinubu stated.
The President also pointed to several positive signs within the economy. Nigeria has seen a reduction in fuel prices and has recorded foreign trade surpluses for three consecutive quarters. Foreign reserves are rising, and the Nigerian Naira has strengthened against the US dollar, contributing to greater economic stability. Additionally, the stock market has seen significant growth, creating trillions of naira in wealth, and foreign investment has surged, signaling renewed confidence in Nigeria’s economic prospects.
However, Tinubu acknowledged that challenges remain, particularly with the rising costs of food and essential medicines, which continue to affect many Nigerian households. He assured citizens that his administration will continue to address these issues as part of its broader economic reform agenda.
“Our government will continue to implement the reforms necessary to foster sustainable growth and prosperity for all Nigerians,” he promised.
As the country enters 2025, President Tinubu called on Nigerians to stay united and focused on the goal of building a one trillion-dollar economy. He urged citizens not to be distracted by divisions based on politics, ethnicity, or religion, stressing that collective effort and national unity were essential for realizing the country’s full potential.
In his New Year’s message, the President extended well wishes to all Nigerians, expressing hope that 2025 would bring positive change and fulfillment for the nation. “By the grace of God, we will achieve the progress we all aspire to,” he concluded.