The National Credit Guarantee Company (NCGC) has facilitated N46.95 billion loans to Nigerian borrowers across the country, President Bola Ahmed Tinubu has said. A total of 67,512 borrowers across 25 states and the Federal Capital Territory (FCT) have so far accessed credit backed by the NCGC, including 11,374 women. This development is part of the administration's efforts to move Nigeria towards a credit-based economy.
According to President Tinubu, 33.5 per cent of the beneficiaries are first-time formal borrowers, bringing more than 22,000 Nigerians into the formal credit system for the first time. The NCGC has issued N21.59 billion in guarantees, enabling participating financial institutions to extend N46.95 billion in loans to Nigerians. This means that every N1 provided in guarantees has helped unlock about N2.17 in credit.
President Tinubu said that access to credit gives individuals and businesses the capacity to meet immediate needs and invest in future growth. He cited traders who require funds to restock and manufacturers seeking to expand production and create jobs. The president also mentioned that NCGC estimates that the businesses it has supported account for 661,291 direct and indirect jobs.
The president described the NCGC as an intervention targeted at addressing one of the major obstacles confronting viable businesses seeking bank credit, particularly where entrepreneurs have limited collateral or no established credit history. He said that the company shares part of the lending risk with participating financial institutions, giving lenders greater confidence to extend credit to businesses and borrowers they might otherwise be reluctant to finance.
The NCGC currently works with 19 financial institutions comprising 13 commercial banks, three microfinance banks, and three development finance institutions. President Tinubu assured that the government will keep widening the road to opportunities until they reach homes and businesses in every part of Nigeria. He reiterated the administration's commitment to expanding access to credit until more households and businesses across the country benefit from the opportunities created by ongoing economic reforms.
President Tinubu also mentioned that the results of the NCGC's first year of operations demonstrate how government reforms can translate into opportunities for Nigerians, particularly those previously excluded from formal credit. He said that tens of thousands who stood outside formal credit a year ago are now inside, borrowing to grow. The president promised to move the country towards a credit-based economy and establish a loan guarantee scheme to help small businesses overcome barriers to accessing finance.
Meanwhile, the federal government has commenced talks with the World Bank for three new loans totaling $1.5 billion. The proposed financing comprises three separate $500 million facilities for climate resilience, social protection, and early childhood development. The World Bank has fixed October 29, 2026, as the estimated date for consideration by its board for a proposed $500 million additional financing for the Agro-Climatic Resilience in Semi-Arid Landscapes project.
Key points
- The NCGC has facilitated N46.95 billion loans to 67,512 borrowers across 25 states and the FCT.
- The NCGC has issued N21.59 billion in guarantees, enabling participating financial institutions to extend N46.95 billion in loans to Nigerians.
- The federal government has commenced talks with the World Bank for three new loans totaling $1.5 billion.
