President Bola Ahmed Tinubu has announced that his administration's efforts to build a credit-based economy are yielding results, with the National Credit Guarantee Company (NCGC) unlocking ₦46.95 billion in loans for 67,512 borrowers within its first year of operations. This development is part of the government's push to increase access to formal financing for businesses and individuals. The NCGC has provided ₦21.59 billion in guarantees, enabling participating financial institutions to extend more credit to businesses and individuals across 25 states and the Federal Capital Territory as of August 2026.
The NCGC was established to address one of the major obstacles confronting small businesses: the difficulty of obtaining loans when borrowers lack sufficient collateral or an established credit history. According to Tinubu, the NCGC shares part of the lending risk with participating financial institutions, giving lenders greater confidence to finance viable businesses and borrowers who might otherwise be excluded from formal credit. This initiative has enabled borrowers to access credit and establish credit records that could improve their access to future financing.
The President highlighted that 33.5 per cent of NCGC beneficiaries, more than 22,600 borrowers, were first-time formal borrowers, giving them an opportunity to establish credit records. Additionally, 11,374 women-owned businesses benefited from NCGC-backed financing during the period under review. The participation of women in the scheme is a significant development, as access to credit is crucial for businesses to expand, increase production, and create employment.
Tinubu emphasized that access to credit is essential for businesses to grow and create jobs. The NCGC estimates that businesses supported through its intervention account for 661,291 direct and indirect jobs. The President linked the development to his broader economic reform agenda, which includes expanding consumer and business credit through institutions such as the Nigeria Consumer Credit Corporation (CREDICORP) and the Nigeria Education Loan Fund (NELFUND).
The NCGC, which commenced operations in July 2025 with an initial capital base of ₦100 billion, was established as a Federal Government-backed institution to expand access to financing through partial credit guarantees, co-guarantees, and technical assistance. The company currently works with 19 financial institutions, comprising 13 commercial banks, three microfinance banks, and three development finance institutions.
As the scheme enters its next phase, NCGC is placing greater emphasis on women-owned and women-led businesses through GuaranteeHer, an initiative targeting more than ₦100 billion in financing for over 20,000 women-owned businesses within five years. This development is part of the government's efforts to widen access to formal credit and promote economic growth.
Tinubu said his administration would continue widening access to formal credit, arguing that the success of its economic reforms would ultimately be measured by how effectively Nigerians can use the opportunities created by those reforms to build businesses, secure livelihoods, and improve their economic prospects. The government's push to build a credit-based economy is expected to have a positive impact on the country's economic development.
Key points
- The NCGC has unlocked ₦46.95 billion in loans for 67,512 Nigerians within its first year of operations.
- The scheme has enabled 22,600 first-time formal borrowers to establish credit records.
- The NCGC estimates that businesses supported through its intervention account for 661,291 direct and indirect jobs.
