Lagos, Jan 2, 2025(springnewsng)

Amid rising poverty levels that have engulfed 129 million Nigerians, President Bola Tinubu has announced the launch of the National Credit Guarantee Company (NCGC), slated for May 2025. The initiative aims to broaden access to credit for businesses and individuals, particularly targeting underserved groups such as women and youth.

“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 stated during his New Year’s address.

The NCGC is designed to partner with institutions such as the Bank of Industry, the Nigerian Sovereign Investment Agency, and private-sector organizations to facilitate the program. Tinubu cited the success of the Nigerian Consumer Credit Corporation (NCCC), launched in 2024, which initially catered to federal civil servants and later extended its services to the general public.

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Economic Realities Deepen Poverty

Economic Headline: 33.88% Inflation Worsens Hunger for Millions

Nigeria’s dire economic reality underscores the urgency for reforms like the NCGC. The National Bureau of Statistics reported that inflation soared to 33.88% in October 2024, escalating the cost of living and rendering basic necessities unaffordable for millions.

Economic Headline: Over Half of Nigerians Live in Poverty (World Bank)

According to the World Bank, 56% of Nigerians—a staggering 129 million people—were living below the poverty line by the end of 2024, a sharp rise from 40% in 2018. Compounding the crisis, widespread hunger and food insecurity have plagued the nation, with floods in 2024 devastating 1.5 million hectares of farmland.

Economic Headline: Charity Stampede Kills 67 Amid Desperation for Food Aid

In December 2024, a tragic stampede during a food distribution event claimed 67 lives, reflecting the growing desperation among Nigerians struggling with rising poverty and inflation.

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Can Credit Access Alleviate Poverty?

While the National Credit Guarantee Company holds the potential to stimulate job creation and economic growth, experts caution that it must be integrated into broader policies aimed at curbing inflation and revitalizing agriculture.

“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.

President Tinubu’s administration has implemented bold economic reforms, yet the scale of poverty and hunger facing millions of Nigerians presents formidable challenges. As the nation looks forward to the launch of the NCGC, its ultimate impact will hinge on the government’s ability to deliver comprehensive and sustainable economic solutions.