The National Credit Guarantee Company (NCGC) has helped unlock ₦46.95bn in loans for Nigerians and businesses within one year of commencing operations, President Bola Tinubu has said. He disclosed this while highlighting the impact of the company’s credit guarantee programme, created to address one of the major barriers preventing businesses from accessing finance. Many viable businesses struggle to obtain loans due to limited collateral or lack of credit history.
President Tinubu said NCGC was established to reduce the challenge of accessing finance by taking on part of the lending risk faced by financial institutions. He stated that many viable businesses meet the same obstacle at the bank, with lenders seeing too much risk in a sound business when the owner has little collateral or no credit history. The President said the company currently works with 19 financial institutions, including 13 commercial banks, three microfinance banks and three development finance institutions.
According to President Tinubu, NCGC had issued ₦21.59bn in guarantees, allowing participating lenders to extend ₦46.95bn in loans. He said the figures showed that every ₦1 provided in guarantees had helped unlock about ₦2.17 in credit. This indicates that the company's guarantee scheme has been effective in encouraging lenders to provide loans to businesses and individuals.
President Tinubu also revealed that 67,512 borrowers across 25 states and the Federal Capital Territory had received credit backed by the scheme. The beneficiaries include 11,374 women, while 33.5 per cent are first-time formal borrowers entering Nigeria’s credit system for the first time. This development is expected to improve access to credit for many Nigerians.
The President noted that more than 22,000 Nigerians have now gained access to formal credit records, which could improve their chances of securing future loans through successful repayment. He explained that access to credit was important because of what individuals and businesses could achieve with it, such as restocking, expanding businesses, and creating jobs.
President Tinubu said businesses supported through the NCGC programme were estimated to account for 661,291 direct and indirect jobs. He added that the initiative was part of efforts by his administration to move Nigeria towards a credit-based economy, where individuals and businesses can access financing to expand their activities.
The President emphasized that the government would continue to widen access to credit opportunities across the country. He reiterated his commitment to implementing policies that promote economic growth and development. The NCGC programme is a significant step towards achieving this goal.
Key points
- NCGC issued ₦21.59bn in guarantees, unlocking ₦46.95bn in loans for Nigerians and businesses.
- 67,512 borrowers across 25 states and the Federal Capital Territory received credit backed by the scheme.
- The programme is part of efforts to move Nigeria towards a credit-based economy.
