FG To Set Up Credit Coy To Boost Investment, Economy

The federal government says one of its efforts in  making life better for Nigerians is the expansion of credit schemes for them.

President Bola Ahmed Tinubu, in his new year message to the citizens On Wednesday disclosed that more Nigerians will have more access to credit in the new year in other to make their lives easy.

Not a few Nigerians have complained of the high interest rates charged by commercial banks from customers who approach them for loans.

Nigerians commercial banks charge as much as 40 per cent interest on loans, according to three persons working with top lenders in the country.

The sources said the Central Bank of Nigeria, CBN unending hike in the benchmark interest rate also known as the Monetary Policy Rate, MPR , has further compounded the problems of access to credits by the citizens.

During the last CBN Monetary Policy Committee, MPC, meeting held in November, the apex bank jerked up the MPR by 25 basic points to 27.50 percent from 27. 25 percent in October.

The Yemi Cardoso-led CBN hiked the MPR multiple times last year amidst serious complaints that the apex bank is stifling investment and hindering access to credit.

Critics of the apex bank also said the decision has slowed down the economy.

Tinubu however promised that by expanding credit to the citizens the economy will received a boost, adding that a ‘Company’ will be establish for expanding “risk-sharing instruments” with financial institutions in the country.

The government has fixed the second quarter of 2025 for the take off of the “National Credit Guarantee Company”, the president said.

He said, “In this new year, my administration will further consolidate and increase access to credit for individuals and critical sectors of the economy to boost national economic output.

“To achieve this, the federal government will establish the National Credit Guarantee Company to expand risk-sharing instruments for financial institutions and enterprises.

The Company—expected to start operations before the end of the second quarter—is a partnership of government institutions, such as the Bank of Industry, Nigerian Consumer Credit Corporation, the Nigerian Sovereign Investment Agency, and Ministry of Finance Incorporated, the private sector, and multilateral institutions.

“This initiative will strengthen the confidence of the financial system, expand credit access, and support under-served groups such as women and youth. It will drive growth, re-industrialisation, and better living standards for our people.”