President Bola Tinubu has announced that the National Credit Guarantee Company (NCGC) has helped unlock N46.95 billion in loans for businesses and individuals within its first year of operations. The President said the company provided N21.59 billion in guarantees, allowing participating financial institutions to extend more than twice that amount in credit to borrowers who might otherwise struggle to secure formal loans. This achievement highlights the federal government’s efforts to expand access to credit for businesses and individuals.
The NCGC began operations in July 2025 as a Federal Government-backed credit guarantee institution designed to reduce the risk faced by lenders and expand access to finance for eligible businesses, particularly micro, small and medium enterprises (MSMEs). According to President Tinubu, the NCGC currently works with 19 financial institutions comprising 13 commercial banks, three micro-finance banks and three development finance institutions. This collaboration has enabled the NCGC to reach a significant number of borrowers across the country.
President Tinubu disclosed that 67,512 borrowers across 25 states and the Federal Capital Territory had received credit backed by the company. Of this number, 11,374 were women, while 33.5 per cent were first-time formal borrowers. This means that more than 22,000 borrowers entered the formal credit system for the first time through loans backed by the NCGC. The President highlighted that these figures demonstrate the impact of the NCGC’s intervention in expanding access to credit.
Recent figures released by the company show that the N21.59 billion in guarantees had generated N46.95 billion in loans, representing a 2.17-fold credit mobilisation ratio. The model allows the NCGC to absorb an agreed portion of the risk on qualifying loans while participating financial institutions retain responsibility for assessing borrowers, monitoring facilities and recovering repayments. This approach has encouraged lenders to extend credit to businesses and individuals who might otherwise struggle to secure formal loans.
President Tinubu explained that many viable businesses struggle to obtain bank loans because their owners lack sufficient collateral or a formal credit history. He said the guarantee mechanism was intended to give lenders greater confidence to extend credit to such businesses and borrowers. The President cited examples of how access to credit could help businesses restock, purchase equipment and take on larger orders, potentially supporting employment and expansion.
The NCGC estimates that businesses supported through its intervention account for 661,291 direct and indirect jobs. President Tinubu added that the figures showed how the government’s reforms could translate into access to finance for Nigerians who had previously been excluded from the formal credit market. Women account for a smaller share of borrowers, with 11,374 out of 67,512 borrowers, or about 16.8 per cent. The NCGC has launched the GuaranteeHer initiative to provide more support to women-owned and women-led businesses.
The GuaranteeHer initiative is targeting more than N100 billion in financing for over 20,000 women-owned businesses over five years. It is also expected to support more than 150,000 direct and indirect jobs. President Tinubu said the NCGC was part of a wider effort by his administration to move Nigeria towards a credit-based economy, citing other initiatives such as the Nigerian Consumer Credit Corporation (CREDICORP) and the Nigerian Education Loan Fund (NELFUND).
Key points
- The NCGC has helped unlock N46.95 billion in loans for businesses and individuals within its first year of operations.
- The company has reached 67,512 borrowers across 25 states and the Federal Capital Territory.
- The NCGC has launched the GuaranteeHer initiative to provide more support to women-owned and women-led businesses.
