The National Credit Guarantee Company (NCGC) has provided credit guarantees to participating financial institutions, enabling them to extend approximately N46.95 billion in loans to 67,512 eligible borrowers across 25 states and the Federal Capital Territory. This development is part of the Federal Government's efforts to expand access to affordable financing for businesses, entrepreneurs, and individuals excluded from conventional lending.
According to President Bola Tinubu, the NCGC had provided N21.59 billion in credit guarantees to participating financial institutions as of August 2026. This has enabled the institutions to mobilize financing through the guarantee arrangement, with every N1 committed in guarantee coverage facilitating approximately N2.17 in lending. The NCGC was established to address longstanding barriers to credit accessibility by sharing lending risks with financial institutions.
The NCGC operates by sharing lending risks with financial institutions, particularly when providing financing to borrowers who lack sufficient collateral or established credit histories. The company currently maintains partnerships with 19 financial institutions, comprising 13 commercial banks, three microfinance banks, and three development finance institutions. These partnerships have been instrumental in implementing the credit guarantee interventions.
A breakdown of the programme's performance shows that approximately 33.5 per cent of beneficiaries, representing more than 22,600 Nigerians, accessed formal credit for the first time. Women-owned businesses also accounted for 11,374 beneficiaries, underscoring the intervention's reach among entrepreneurs who have traditionally encountered difficulties securing financing from formal financial institutions.
Beyond improving credit accessibility, the NCGC reported that businesses supported through its guarantee arrangements had contributed to an estimated 661,291 direct and indirect jobs. The employment figures highlight the potential contribution of improved credit access to business expansion, enterprise development, and job creation, particularly among micro, small, and medium enterprises.
The establishment of the NCGC forms part of the administration's broader strategy to develop a credit-based economy in which workers, entrepreneurs, and businesses can obtain financing to meet their consumption and investment needs. The credit guarantee mechanism was designed to address constraints preventing viable businesses and individuals from obtaining loans from conventional financial institutions due to inadequate collateral and limited credit histories.
The NCGC's intervention represents another component of the Federal Government's efforts to expand formal lending to the real sector, with the institution expected to build on its achievements by expanding the geographical coverage of its interventions, strengthening partnerships with lenders, and increasing access to financing for underserved individuals and enterprises.
Key points
- The NCGC has facilitated N46.95 billion in loans to 67,512 individuals and businesses across Nigeria.
- The programme has enabled 22,600 Nigerians to access formal credit for the first time.
- The NCGC's guarantee arrangements have contributed to an estimated 661,291 direct and indirect jobs.
