The National Credit Guarantee Company has helped unlock N46.95bn in loans for 67,512 Nigerians and businesses within its first year, President Bola Tinubu has said.
According to Tinubu, the financing was supported by N21.59bn in guarantees issued by the company, resulting in about N2.17 in lending for every N1 guaranteed. The beneficiaries are spread across 25 states and the Federal Capital Territory.
The President said 11,374 beneficiaries were women, while 33.5 per cent of the borrowers were entering the formal credit system for the first time. This represents more than 22,000 people who could begin building formal credit histories through successful loan repayments.
The NCGC provides partial guarantees that share lending risks with participating financial institutions, helping businesses and borrowers with limited collateral or credit histories access financing. The company said its guarantees generally cover up to 60 per cent of outstanding loan principal, with higher coverage available for some strategic categories.
Tinubu said the company currently works with 19 financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions. Businesses supported through the scheme are estimated to account for 661,291 direct and indirect jobs.
The President linked the credit guarantee scheme to the government’s wider effort to develop a formal credit economy, alongside institutions including the Nigerian Consumer Credit Corporation, Nigerian Education Loan Fund, Bank of Industry and Development Bank of Nigeria. He said increased access to financing could help businesses expand, support consumption and create jobs.
The NCGC was established following a presidential directive in August 2024 to address financing constraints facing small businesses and underserved borrowers. Tinubu said the government would continue expanding formal credit access as part of efforts to connect its economic reforms with opportunities for households and businesses.
