President Bola Tinubu said that the Nigerian government intends to create a National Credit Guarantee Company in 2025 to crash food prices and promote local manufacturing of essential and other medical supplies.

The President disclosed this in his New Year message, asking states to use the federal government’s compressed Natural Gas (CNG) initiative to lower transportation costs.

The new firm to partner institutions He said the new firm will begin before the end of the second quarter of the year and will partner with government institutions such as the Bank of Industry (BOI), Nigeria Consumer Credit Corporation (CreditCorp), the Nigeria Sovereign Investment Agency (NSIA) the Ministry of Finance Incorporated (MoFi), and the private sector.

The President disclosed that the initiative will boost confidence in the financial system, expand credit access and aid under-served groups.

According to a Vanguard report, the new company will expand risk-sharing instruments for financial institutions and enterprises.

Tinubu said: “Though 2024 posed numerous challenges to our citizens and households, I am confident that the New Year will bring brighter days. Economic indicators point to a positive and encouraging outlook for our nation.”

FG launches N20 billion fund for auto industry

The development comes as the Nigerian government launched an N20 billion consumer credit scheme on Thursday, December 5, 2024, to grow the demand for locally assembled vehicles.

The scheme, led by the Nigerian Credit Corporation (CREDITCORP), hopes to restrict consumer interest rates to a single digit.

FG moves to dismantle barriers to buying vehicles

The Managing Director of CREDITCORP, Uzoma Nwagba, explained that the funds aim to eliminate the barriers faced by consumers when buying vehicles on credit.

The launch was in partnership with the National Automotive Design and Development Council (NADDC) and CREDITCORP.

The CREDITCORP MD said that the credit economy improves the quality of citizens’ lives, job creation and wealth for Nigerians.

Nwagba disclosed that the government is committed to supporting the sector to ensure growth and sustainability.

CreditCorp opens application for Nigerians to get loans Legit.ng earlier reported that the Nigerian Consumer Credit Corporation (CreditCorp) had opened applications for the Credit Access for Light and Mobility Fund, which provides consumer credit to help Nigerians access CNG conversions and solar home systems via partner financial institutions.

Dada Olusegun, special assistant to President Bola Tinubu on social media, announced this on Monday, October 28, 2024, asking Nigerians to leverage the initiative.