President Bola Tinubu has said the National Credit Guarantee Company (NCGC) has helped participating financial institutions extend ₦46.95 billion in loans to businesses and other borrowers in its first year of operations.
Tinubu disclosed this in a statement posted on his X handle on Monday, saying the credit guarantees were designed to address one of the major barriers preventing viable businesses from accessing bank financing.
According to the President, NCGC has issued ₦21.59 billion in guarantees through 19 financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.
He said the guarantees had helped unlock about ₦2.17 in credit for every ₦1 guaranteed by the company.
“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,” Tinubu said.
He explained that NCGC was established to share part of the lending risk with participating financial institutions, giving them greater confidence to extend credit to businesses and borrowers that might otherwise be rejected.
The President said 67,512 borrowers across 25 states and the Federal Capital Territory had so far received credit backed by NCGC.
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Of this number, 11,374 are women, while 33.5 per cent are first-time formal borrowers.
Tinubu said more than 22,000 Nigerians had therefore gained their first entry into the formal credit system, allowing them to establish credit records that could improve their access to future loans.
“Each successful repayment strengthens that record and can make the next loan easier to secure,” he said.
The President linked the expansion of access to credit to increased business activity and job creation, saying NCGC estimates that businesses supported through its guarantees account for 661,291 direct and indirect jobs.
He said the credit system could enable traders to restock ahead of peak periods, while manufacturers could use financing to purchase equipment and fulfil larger orders.
Tinubu said the government’s broader credit initiatives were part of his administration’s effort to move Nigeria towards a credit-based economy.
“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,” he said.
He noted that the government had also established other institutions and programmes to expand access to credit, including the Consumer Credit Corporation (CREDICORP), the Nigerian Education Loan Fund (NELFUND), the Bank of Industry and the Development Bank of Nigeria.
According to Tinubu, CREDICORP provides consumer credit to working Nigerians, while NELFUND supports education financing, and the Bank of Industry (BOI) and Development Bank of Nigeria (DBN) continue to lend to businesses.
He said the NCGC guarantees were intended to complement those efforts by addressing the risk that often prevents financial institutions from lending to businesses without sufficient collateral or established credit histories.
“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,” Tinubu said.
He added that the government would continue expanding access to formal credit so that the opportunities created by its reforms could reach households and businesses across Nigeria.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X