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President Bola Tinubu has said his administration is moving Nigeria towards a credit-based economy by expanding access to financing for workers, students and businesses.
Tinubu stated this in a post on his official X account while highlighting the progress recorded by the National Credit Guarantee Company (NCGC) one year after it began operations.
“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 wrote on X.
The President said the government had been building institutions to make access to credit easier for Nigerians.
He listed the Consumer Credit Corporation (CREDICORP), Nigerian Education Loan Fund (NELFUND), Bank of Industry (BOI), Development Bank of Nigeria (DBN) and the NCGC among the initiatives supporting the government’s credit expansion programme.
According to Tinubu, the NCGC was established to address one of the major obstacles confronting businesses seeking loans — insufficient collateral and lack of credit history.
“Many viable businesses still meet the same obstacle at the bank. Lenders see too much risk in a sound business when the owner has little collateral or no credit history,” he wrote.
Tinubu explained that the NCGC shares part of the lending risk with participating financial institutions, giving them greater confidence to lend to businesses and borrowers who might otherwise be rejected.
The President said the NCGC currently operates through 19 financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.
“One year into operations, we can see what that model is doing,” Tinubu stated in his X post.
He disclosed that the NCGC had issued ₦21.59 billion in guarantees, enabling participating lenders to extend ₦46.95 billion in loans.
“That means every ₦1 in guarantees has helped unlock about ₦2.17 in credit,” Tinubu wrote.
The President said 67,512 borrowers across 25 states and the Federal Capital Territory had so far received credit backed by the scheme.
He added that 11,374 of the beneficiaries were women, while 33.5 per cent were first-time formal borrowers.
“For more than 22,000 Nigerians, this is their first entry into the formal credit system,” Tinubu said in the post.
According to him, the beneficiaries can now build formal credit histories through successful repayment, potentially making it easier for them to secure loans in the future.
“They now have a credit record they can build. Each successful repayment strengthens that record and can make the next loan easier to secure,” he wrote.
Tinubu also highlighted the potential impact of credit access on businesses and employment.
He said traders could use loans to restock their businesses, while manufacturers could finance equipment purchases to meet larger orders and create employment opportunities.
According to the President, businesses supported through the NCGC programme are estimated to account for 661,291 direct and indirect jobs.
“This is how we move from reforms to opportunities. Our reforms laid the foundation. Credit gives Nigerians the means to build on it,” Tinubu wrote.
He said the government would continue expanding access to credit across the country.
“We will keep widening that road until the opportunities our reforms create reach homes and businesses in every part of Nigeria,” the President stated.
Tinubu ended the post by declaring: “Promise made, Promise Kept. We are moving from reforms to opportunities. Nigeria First.”
