The Federal Government has unveiled plans to establish the National Credit Guarantee Company by the end of the second quarter of the year.
This initiative, announced by President Bola Tinubu during his New Year address on Wednesday, is set to revolutionise access to credit for individuals and key sectors of the economy.
Tinubu emphasised his administration’s commitment to economic growth through increased credit access, stating: “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 National Institute of Credit Administration, a chartered professional regulatory institute dedicated to the management of the credit management profession in Nigeria, strongly supports this initiative.
According to a statement by the Registrar/Chief Executive Officer of NICA, Prof. Chris Onalo, this development marks a critical step in addressing the challenges that Micro, Small, And Medium Enterprises face in accessing business loan credit, a key driver of sustainable economic growth and development.
NICA also recalled its earlier proposal for establishing a National Credit Guarantee Corporation, submitted to the government in September 2024 through the Office of the Vice President. Onalo said this aligns with the institute’s statutory mandate under Section 1, Subsection 2(f) of the NICA Establishment Act, which empowers it to “consult with and make recommendations to the government, regulatory bodies, trade associations, the academic community, and other professional bodies on all matters related to credit management.”
