NCGC unlocks N46.95bn in loans for 67,512 borrowers in first year — Tinubu
National Credit Guarantee Company (NCGC)
Abdullateef Fowewe
President Bola Tinubu has highlighted the early results of the National Credit Guarantee Company (NCGC), saying the scheme has helped move Nigeria toward a credit-based economy by easing access to finance for small businesses and individuals who lack collateral or credit history.
In a series of posts on X on Monday, the President recalled his campaign pledge to establish a loan guarantee scheme.
“When I sought your mandate, I promised to move Nigeria towards a credit-based economy and to establish a loan guarantee scheme that would help small businesses overcome the barriers that keep them from finance.
“That promise was about something practical. A worker with access to credit can buy what the family needs and pay over time, and a small business can invest today against the income it expects tomorrow,” he wrote.
Tinubu noted that complementary institutions such as CREDICORP (for consumer credit), NELFUND (for student loans), the Bank of Industry and the Development Bank of Nigeria are already supporting broader access to finance.
The NCGC, he said, specifically tackles one of the toughest barriers.
“Many viable businesses still meet the same obstacle at the bank. Lenders see too much risk in a sound business when the owner has little collateral or no credit history. We established NCGC to help change that. It carries part of the lending risk with participating financial institutions, giving them greater confidence to lend to businesses and borrowers they might otherwise turn away,” the President stated.
One year into operations, NCGC works with 19 financial institutions (13 commercial banks, three microfinance banks and three development finance institutions).
According to Tinubu, the company has issued ₦21.59 billion in guarantees.
“On the strength of those guarantees, participating lenders have extended ₦46.95 billion in loans. That means every ₦1 in guarantees has helped unlock about ₦2.17 in credit,” he added.
So far, 67,512 borrowers across 25 states and the Federal Capital Territory have received NCGC-backed credit, including 11,374 women.
About 33.5 percent (more than 22,000 people) are first-time formal borrowers.
“They now have a credit record they can build. Each successful repayment strengthens that record and can make the next loan easier to secure,” he added.
Tinubu emphasised the wider economic impact, “Credit matters because of what people can do with it. A trader can restock before the festive season. When a manufacturer takes a bigger order and buys another machine to fill it, another Nigerian gets a job. NCGC estimates that the businesses it has supported account for 661,291 direct and indirect jobs.”
He concluded, “This is how we move from reforms to opportunities. Our reforms laid the foundation. Credit gives Nigerians the means to build on it. Tens of thousands who stood outside formal credit a year ago are now inside, borrowing to grow. We will keep widening that road until the opportunities our reforms create reach homes and businesses in every part of Nigeria. Promise made, Promise Kept. We are moving from reforms to opportunities. Nigeria First.”
