In his New Year address, President Bola Tinubu revealed plans to establish a National Credit Guarantee Company (CGC) by June 2025. The initiative aims to expand access to loans and financial instruments for individuals, enterprises, and financial institutions by mitigating the risks of borrower defaults.
What is a Credit Guarantee Company?
A Credit Guarantee Company is an institution that ensures loans extended to small and medium-sized enterprises (MSMEs) are secure by acting as a guarantor to lenders. By lowering the risk of defaults, CGCs encourage financial institutions to lend more freely, boosting economic activity.
Nigeria’s CGC will operate as a joint effort involving government agencies like the Bank of Industry, Nigerian Sovereign Investment Agency, Ministry of Finance, and the organized private sector.
“This initiative will strengthen the confidence of the financial system, expand credit access, and support underserved groups such as women and youth. It will drive growth, re-industrialization, and better living standards for our people,” the President said.
President Tinubu acknowledged 2024 as a difficult year for many Nigerian households, citing the high cost of food and essential drugs. However, he expressed optimism for 2025, highlighting economic milestones such as:
- Gradual reduction in fuel prices.
- Three consecutive quarters of foreign trade surpluses.
- Record-breaking growth in the stock market, generating trillions in wealth.
- Increased foreign investment as a sign of renewed confidence in Nigeria’s economy.
The President also promised a reduction in inflation rates from 34.8% to 15% and prioritized food affordability and local production of drugs and medical supplies.
Vision for 2025: Youth Inclusiveness and National Unity
President Tinubu announced plans for a National Youth Confab, scheduled for the first quarter of 2025, to foster dialogue and collaboration among Nigerian youth. The event will be organized by the Ministry of Youth, with details on representative selection to be released soon.
In addition, the government will launch a National Values Charter, aimed at fostering patriotism and strengthening the bond between citizens and government.
“The Charter will promote mutual commitments and inspire trust and cooperation among our diverse population,” President Tinubu explained.
Also An ambitious national orientation campaign will accompany these initiatives, focusing on uniting Nigerians across political, ethnic, regional, and religious divides.
A $1 Trillion Economy in Sight
Furthermore, As part of his administration’s economic goals, President Tinubu reaffirmed his commitment to growing Nigeria’s economy to a $1 trillion valuation through reforms that promote sustainable growth. He emphasized credit access as a critical factor in boosting national economic output and urged citizens to maintain unity and focus.
“We are on the right path to building a great Nigeria that works for everyone. Let us not get distracted by a tiny segment of our population that sees things through the prisms of politics, ethnicity, region, and religion,” he urged.
Meanwhile, With these bold initiatives, the administration seeks to set 2025 as a year of promise and transformation for Nigerians.
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