Tinubu Launches New Initiative to Slash Food and Drug Prices

Tinubu’s Bold Move: New Company Targets Affordable Food and Drugs

In his New Year message, President Bola Tinubu announced plans to establish the National Credit Guarantee Company. This initiative aims to reduce the prices of food and essential drugs by expanding risk-sharing instruments for financial institutions and enterprises. The company is expected to commence operations before the end of the second quarter of 2025.

The National Credit Guarantee Company will be a partnership among government institutions such as the Bank of Industry, Nigerian Consumer Credit Corporation, Nigerian Sovereign Investment Agency, and Ministry of Finance Incorporated, alongside the private sector and multilateral institutions.

Its primary objective is to strengthen the confidence of the financial system, expand credit access, and support underserved groups, including women and youth. This initiative is anticipated to drive growth, re-industrialization, and improve living standards for Nigerians.

President Tinubu also emphasized the government’s commitment to intensifying efforts to lower the costs of food and essential drugs by boosting food production and promoting local manufacturing of medical supplies. The administration aims to reduce inflation from its current high of 34.6% to 15% by the end of 2025.

Additionally, the President highlighted positive economic indicators, including gradual decreases in fuel prices, foreign trade surpluses recorded over three consecutive quarters, rising foreign reserves, and a strengthening naira against the US dollar.

These developments reflect renewed confidence in Nigeria’s economy and are expected to contribute to greater stability in the coming year.

The establishment of the National Credit Guarantee Company is part of a broader strategy to enhance access to credit for individuals and critical sectors of the economy, thereby boosting national economic output and improving the quality of life for all Nigerians.