The Federal Government has unveiled plans to launch a National Credit Guarantee Company by May 202 to expand access to credit for businesses and individuals across Nigeria, News About Nigeria reports.
The initiative is designed to improve financial inclusion by supporting underserved groups such as women, youth, and small businesses.
The proposed credit guarantee framework will reduce the risks associated with lending and encourage financial institutions to extend more loans to Nigerians.
“This initiative will ensure that small businesses, particularly those led by women and youth, can access affordable credit to grow their enterprises,” a government spokesperson said.
The establishment of the National Credit Guarantee Company will provide a risk-sharing mechanism for financial institutions and promote confidence in lending to sectors traditionally perceived as high-risk.
By reducing barriers to credit, the scheme is expected to stimulate economic growth and empower Nigerians to contribute more effectively to the nation’s economy.
Analysts have lauded the initiative as a game-changer for the Nigerian financial landscape, adding that it will boost entrepreneurship, reduce poverty, and create jobs.
The government reiterated its commitment to bridging the financial gap for marginalized groups and fostering a more inclusive economy.
The credit guarantee scheme is one of several measures outlined under the administration’s economic development plan.
When operational, the National Credit Guarantee Company will serve as a cornerstone of the government’s strategy to unlock Nigeria’s economic potential and create opportunities for millions of Nigerians.
“This is a significant step toward addressing the financing challenges faced by small businesses and individuals. It will revolutionize the lending space and empower a greater number of Nigerians,” the statement concluded.
