Amid rising poverty levels affecting 129 million Nigerians, President Bola Tinubu announced the launch of the National Credit Guarantee Company (NCGC), set for May 2025. The initiative aims to expand credit access for businesses and individuals, targeting underserved groups such as women and youth......Read The Full Article>>.....Read The Full Article>>
“The federal government will establish the National Credit Guarantee Company to expand risk-sharing instruments for financial institutions and enterprises. This will strengthen the financial system, improve credit access, and enhance living standards for our people,” Tinubu said during his New Year’s address.
The NCGC will partner with the Bank of Industry, Nigerian Sovereign Investment Agency, and private-sector organizations to facilitate the program. Tinubu highlighted the previous success of the Nigerian Consumer Credit Corporation (NCCC), launched in 2024, which initially served federal civil servants and has since expanded to the general public.
Nigeria’s economic reality underscores the urgency of such reforms. Inflation climbed to 33.88% in October 2024, according to the National Bureau of Statistics, driving up the cost of living and leaving millions unable to afford basic necessities.
The World Bank reports that 56% of Nigerians—129 million people—live below the poverty line as of 2024, up from 40% in 2018. Widespread hunger and food insecurity plague communities, with floods destroying 1.5 million hectares of farmland in 2024.
In December 2024, a stampede during a food distribution event tragically claimed 67 lives, highlighting the desperation of many Nigerians as the country grapples with rising poverty and inflation.
Can Credit Access Alleviate Poverty?
While the National Credit Guarantee Company has the potential to create jobs and spur economic growth, experts warn that it must be paired with comprehensive policies addressing inflation and agricultural recovery.
“This initiative could foster entrepreneurship and industrial growth, but its success depends on stabilizing the economy and addressing poverty head-on,” said a senior economist at the Nigerian Economic Summit Group.
Tinubu’s administration has embarked on bold economic reforms, but as millions of Nigerians face worsening poverty and hunger, the road to recovery remains steep.
