President Bola Tinubu has announced his administration’s commitment to tackling inflation and improving economic conditions. A key strategy includes establishing a National Credit Guarantee Company by the second quarter (Q2) of 2025.
Inflation Reduction Strategy
The president highlighted the urgent need to reduce inflation, currently at 34.6%, to a more sustainable 15% by 2025. He emphasized that this goal requires comprehensive efforts, including boosting food production and enhancing the local manufacturing of essential goods. This approach aims to stabilize prices and provide much-needed relief to Nigerians.
“We are resolute in our ambition to reduce inflation from its current high of 34.6% to 15%. With diligent work and God’s help, we will achieve this goal and provide relief to all our people.
Credit Access Expansion
Addressing this challenge also involves improving access to credit for individuals and key economic sectors. President Tinubu stated that expanding credit access is essential for increasing national economic output. To achieve this, the Federal Government will establish the National Credit Guarantee Company. This initiative will enhance risk-sharing instruments for financial institutions and businesses, thereby increasing lending opportunities.
“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.
Inflation-Focused Public-Private Partnership
The National Credit Guarantee Company will operate as a partnership between public and private institutions. Key participants include the Bank of Industry, the Nigerian Consumer Credit Corporation, the Nigerian Sovereign Investment Agency, and the Ministry of Finance Incorporated. Private sector stakeholders and multilateral institutions will also play a critical role in its operations. This collaboration is expected to bolster financial system confidence while addressing inflationary pressures.
“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 the Ministry of Finance Incorporated, the private sector, and multilateral institutions.”
Supporting Underserved Groups
President Tinubu emphasized that the initiative would support underserved groups, including women and youth. By expanding credit opportunities, the government aims to empower these groups, enabling them to participate more actively in the economy. This measure is crucial for fostering inclusivity while mitigating the impact of inflation.
Inflation Control and Economic Growth
The president assured Nigerians that the initiative is designed to drive economic growth, reindustrialization, and improved living standards. He reiterated his administration’s determination to combat inflation through strategic actions and partnerships. With diligent implementation, the Federal Government believes this approach will stabilize the economy and create long-term benefits for citizens.
By addressing inflation with targeted measures, the government aims to create a more resilient and inclusive economy for all Nigerians.
