President Bola Tinubu has reiterated his administration’s commitment to transitioning Nigeria to a credit-based economy.
The President gave the assurance in a statement posted on his verified X account on Monday. Tinubu said the initiative would include a loan guarantee programme designed to help small businesses overcome barriers to accessing finance.
He said the programme would enable small enterprises to secure loans and support their expansion.
According to the President, a small business could invest today against expected future income, while a worker with access to credit could buy essential items for the family and pay for them over time.
“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.
“That promise was about something practical. We have been building the institutions to make that possible. Through CREDICORP, working Nigerians can access consumer credit.
“Our students can finance their education through NELFUND, while the Bank of Industry and Development Bank of Nigeria continue to lend to businesses.
“The National Credit Guarantee Company takes on one of the hardest barriers to business credit,” he wrote.
Speaking further, he argued that a viable credit system is of utmost importance to businesses to thrive in the country, stating that the NCGC had supported 661,291 direct and indirect jobs through the scheme.
Additionally, Tinubu applauded the economic reforms under his administration, adding that the scheme gives more credibility to growth.
He noted that the federal government would keep expanding the scheme.
Backstory…
In March 2022, while campaigning for the presidency, Tinubu argued that the cost of borrowing was too high for Nigerian businesses and called for lower interest rates that would allow industrialists to access financing without being trapped by the cost of debt.
He linked access to affordable credit to the broader need to put Nigeria’s idle labour, capital and productive capacity to work.
Meanwhile, the president’s latest remarks comes just few days after he urged Nigerians to not loose hope ahead of the nations 66th independence anniversary.
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