In a move aimed at tackling Nigeria’s persistent economic challenges, President Bola Tinubu has unveiled a new government initiative to combat the rising costs of food and essential medical supplies. In his New Year broadcast to the nation, the president revealed plans for the establishment of the National Credit Guarantee Company, a new body designed to support local production and reduce inflationary pressures.
“We are committed to reducing inflation from its current high of 34.6% to 15% in 2025,” Tinubu declared. “The new company will play a crucial role in this effort by supporting food production and local drug manufacturing, providing relief to Nigerian households who have suffered from the rising cost of living.”
The company, which is expected to begin operations by the end of the second quarter of 2025, is being positioned as a key player in the government’s strategy to stabilize prices and stimulate economic growth. The firm will operate as a partnership between government agencies, private-sector players, and multilateral institutions. Key partners in this initiative include the Bank of Industry (BOI), the Nigerian Sovereign Investment Authority (NSIA), and the Nigerian Consumer Credit Corporation (NCCC), among others.
National Credit Guarantee Company to Support Underserved Groups
The president emphasized that the company would not only focus on reducing costs but would also work to expand access to credit across the country. A key priority will be ensuring that historically underserved groups, including women and youth, benefit from the new financial tools being introduced.
“We are determined to strengthen the confidence of the financial system and increase access to credit for both individuals and critical sectors of our economy,” Tinubu stated. “This initiative will provide risk-sharing instruments to boost the financial capacity of enterprises and institutions, paving the way for re-industrialization and economic prosperity.”
The new company will provide a financial safety net for local businesses, allowing them to scale up production and reduce reliance on expensive imported goods, which have exacerbated the inflation crisis.
Tinubu’s message also touched on the government’s ongoing efforts to lower the cost of transportation, a significant component of the overall cost of living. He urged Nigerian states to participate in the Compressed National Gas (CNG) programme, which aims to reduce the cost of fuel for public transportation.
Mixed Reactions from Opposition
Despite the hopeful tone of the president’s speech, the opposition party, the Peoples Democratic Party (PDP), has expressed skepticism regarding the government’s ability to address the immediate needs of Nigerians struggling with inflation. In a statement, the PDP charged the president with failing to provide concrete and immediate steps to ease the suffering of Nigerians, particularly in the areas of fuel prices and food insecurity.
“The president’s speech was full of promises, but Nigerians need immediate relief. The cost of food and fuel remains unbearable for millions, and it is time for President Tinubu to take decisive actions,” said a spokesperson for the PDP.
Tinubu, however, remained resolute in his optimism, pointing to a series of positive economic indicators. The president cited the gradual reduction in fuel prices, the growth of foreign reserves, and the stock market’s record performance as signs of an improving economy. “Economic indicators point to a positive and encouraging outlook for our nation,” he said. “In 2025, we are determined to make significant strides towards a more prosperous Nigeria.”
Youth Empowerment and National Unity
In addition to economic reforms, President Tinubu reiterated his commitment to empowering Nigeria’s youth. The president had previously promised a youth conference in the aftermath of the #EndSARS protests, and he confirmed that the conference would take place in the first quarter of 2025.
“This youth confab will provide a platform for young Nigerians to voice their concerns and contribute to nation-building,” Tinubu said. “We recognize that youth are the future of this country, and their involvement in governance is essential to creating a Nigeria that works for everyone.”
The president also emphasized the importance of national unity and values, pledging to unveil the National Values Charter in the first quarter of 2025. The charter, which has already been approved by the Federal Executive Council, will promote ethical conduct, patriotism, and a shared sense of responsibility among citizens.
“The National Values Charter will serve as a guiding document for our citizens,” Tinubu explained. “It will foster mutual trust between the government and the people, and encourage us all to work together for the common good of our nation.”
A Year of Promise and Progress
In his concluding remarks, Tinubu urged Nigerians to remain hopeful, despite the challenges they have faced in the past year. “2024 posed numerous challenges to our citizens and households, but I am confident that 2025 will bring brighter days,” he said. “With God’s help and our collective effort, we will achieve the goals we have set for our nation.”
The president called for unity, asking Nigerians to set aside divisions based on ethnicity, religion, or politics in order to build a prosperous and inclusive future.
“Our focus must be on our shared destiny as a nation,” he said. “We must unite to achieve the national goals and objectives that will bring about lasting growth and prosperity.”
