Plans unveiled to boost financial inclusion

The Nigerian Government has unveiled plans to establish the National Credit Guarantee Company (NCGC) as part of its strategy to enhance financial inclusion and broaden credit access for underserved populations, reports TechPoint. This company will provide loans to businesses and individuals, expanding risk-sharing instruments for financial institutions and enterprises. The NCGC will partner with entities like the Bank of Industry, Nigerian Consumer Credit Corporation, Nigerian Sovereign Investment Agency, and Ministry of Finance Incorporated, alongside private sector and multilateral institutions. This development follows the establishment of the Nigerian Consumer Credit Corporation eight months prior, which initially targeted federal civil service employees and has since expanded to the general public. President Bola Tinubu, in his New Year’s speech, emphasised that the NCGC will ‘strengthen the confidence of the financial system, expand credit access, and support underserved groups such as women and youth’. Despite Nigeria’s progress in promoting financial inclusion, challenges remain. According to a 2020 report, nearly 37% of Nigerian adults lacked access to formal or informal financial services, highlighting a persistent gap in the country's financial ecosystem.