Workers, Students Get Fresh Access To Loans Under Tinubu

Workers, Students Get Fresh Access To Loans Under Tinubu

President Bola Ahmed Tinubu says workers, students and businesses can now access various forms of credit through financing programmes introduced or strengthened by his administration.

Tinubu disclosed this on Monday while highlighting what he described as progress made through government-backed credit schemes aimed at widening access to formal financing.

According to the President, working Nigerians can obtain consumer credit through the Nigerian Consumer Credit Corporation, CREDICORP, while students can access education financing through the Nigerian Education Loan Fund, NELFUND.

He said the Bank of Industry and the Development Bank of Nigeria also continued to provide financing to businesses, while the National Credit Guarantee Company, NCGC, was helping reduce the risks faced by lenders.

Tinubu explained that NCGC shares part of the lending risk with participating financial institutions, making it easier for businesses without substantial collateral or an established credit history to obtain loans.

The President said the company currently works with 19 financial institutions, including 13 commercial banks, three microfinance banks and three development finance institutions.

He disclosed that NCGC had issued N21.59 billion in guarantees within its first year of operation, enabling participating lenders to provide N46.95 billion in loans.

This means that every N1 backed by the guarantee scheme had helped unlock about N2.17 in credit, according to the figures released by the President.

Tinubu said 67,512 borrowers across 25 states and the Federal Capital Territory had so far received credit supported by NCGC.

Women accounted for 11,374 of the beneficiaries, while 33.5 per cent were first-time formal borrowers.

The President said this meant that more than 22,000 Nigerians had entered the formal credit system for the first time and could build a credit history through responsible repayment.

He said easier access to credit could help individuals meet immediate financial needs while allowing businesses to purchase equipment, increase stock, take on larger orders and expand their operations.

Tinubu added that NCGC estimated that businesses supported through its guarantees had contributed to 661,291 direct and indirect jobs.

The President said expanding access to formal credit was part of his administration’s broader economic reforms and its plan to make financing more available to Nigerians and businesses.

He said the government would continue widening access to credit so that more people could benefit from the opportunities created through its economic policies.

“Promise made, promise kept,” Tinubu said, restating his administration’s commitment to moving Nigeria towards a credit-based economy.