President Bola Tinubu has announced that 67,512 Nigerians across 25 states and the Federal Capital Territory have benefited from loans guaranteed by the National Credit Guarantee Company (NCGC) in its first year. The NCGC issued N21.59 billion in guarantees, enabling financial institutions to extend N46.95 billion in loans to businesses and individuals. This represents a significant milestone in the government's effort to expand access to credit.
The NCGC's guarantee scheme has facilitated loans to 11,374 women and 33.5% of beneficiaries are first-time formal borrowers, indicating that over 22,000 Nigerians have entered the formal credit system for the first time. According to Tinubu, successful loan repayment will enable borrowers to build credit histories, improving their prospects of accessing financing in the future. This initiative aims to promote a credit-based economy and reduce difficulties faced by businesses and individuals seeking financing.
The government established the NCGC to address barriers faced by viable businesses whose owners lack sufficient collateral or an established credit history. The company shares lending risk with participating financial institutions, encouraging them to extend financing to borrowers they might otherwise reject. Tinubu stated that the NCGC is working with 19 financial institutions, comprising 13 commercial banks, three microfinance banks, and three development finance institutions.
Tinubu emphasized that expanding access to credit is crucial for economic growth, allowing traders to restock, manufacturers to expand production, and businesses to invest before receiving future income. The administration plans to continue expanding access to formal credit, alongside programmes operated through institutions such as the Nigerian Consumer Credit Corporation and the Development Bank of Nigeria.
The NCGC estimates that businesses supported under the programme account for 661,291 direct and indirect jobs. Tinubu described the initiative as part of the administration's effort to translate economic reforms into opportunities for Nigerians. He expressed satisfaction with the progress made, stating that the government intends to extend such opportunities to more households and businesses across the country.
Tinubu's administration views the NCGC's achievements as evidence of progress in expanding access to finance. The president is committed to sustaining and scaling up initiatives that promote economic growth and financial inclusion. By leveraging the NCGC's guarantee scheme, the government aims to promote a culture of credit and entrepreneurship, ultimately driving economic development.
The president's remarks underscore the importance of collaborative efforts between government agencies, financial institutions, and private sector stakeholders in driving economic growth and development. As the administration continues to implement its economic reforms, it is expected that more Nigerians will benefit from initiatives like the NCGC's guarantee scheme, ultimately contributing to the country's economic prosperity.
Key points
- 67,512 Nigerians have accessed loans backed by the National Credit Guarantee Company during its first year of operations.
- The NCGC's guarantee scheme has facilitated loans to 11,374 women and 33.5% of beneficiaries are first-time formal borrowers.
- The programme has supported businesses that account for an estimated 661,291 direct and indirect jobs.
