Federal Government’s  National Credit Guarantee Company (NCGC)  unlocked  46.95 billion naira in loans for 67,512 Nigerians and businesses within its first year of operations.

President Bola Ahmed Tinubu , who made this known yesterday, explained that the financing was mobilized through N21.59 billion in credit guarantees.

According to the President,  the figures demonstrate  his administration’s determination to move Nigeria towards a credit-based economy in which workers and businesses could access financing without being held back by traditional collateral requirements. Nigeria Investment Guide

 The figures cited by the President are consistent with NCGC’s first-year performance, which showed that 21.59 billion naira in risk cover unlocked N46.95 billion in financing for 67,512 borrowers across 25 states and the Federal Capital Territory (FCT).

 He said the loans  would allow the new borrowers to establish credit histories which could improve their prospects of securing further financing as they successfully repay their loans.

Tinubu  stated that his  administration has  been building institutions around deliberate  schemes, adding that its ongoing reforms are cruising to the opportunities stage. 

Tinubu  listed  the Nigerian Consumer Credit Corporation (CREDICORP), the Nigerian Education Loan Fund (NELFUND), the Bank of Industry (BOI), Development Bank of Nigeria (DBN) and NCGC as components of his administration’s  credit architecture.

The President  explained that while CREDICORP provides consumer credit to working Nigerians and NELFUND supports students with education financing, the NCGC was established to confront one of the biggest obstacles to business lending–the reluctance of financial institutions to lend to otherwise viable businesses with insufficient collateral or limited credit histories.

The NCGC operates by providing partial credit guarantees, sharing part of lenders’ exposure and consequently reducing the risk attached to lending to underserved businesses and consumers.

The company  guarantees typically cover up to 60 per cent of outstanding loan principal, although higher coverage may apply to some strategic categories.

Tinubu said  in the post that the NCGC currently works with 19 participating financial institutions comprising 13 commercial banks, three microfinance banks and three development finance institutions. 

He added that beyond the volume of loans already mobilized, the businesses supported under the guarantee arrangement were estimated to account for 661,291 direct and indirect jobs.

Independent reporting on NCGC’s first-year performance  put the number of jobs supported at 661,291. It confirmed that 11,374 of the 67,512 beneficiaries were women.

The President said access to credit was important not merely because of the amount of money disbursed but because of its capacity to expand businesses, stimulate consumption and create employment.

Tinubu  pointed out  that his   administration considered the expansion of credit as a critical bridge between its economic reforms and opportunities available to ordinary Nigerians.

The NCGC was created following a presidential mandate in August 2024 to address financing constraints confronting small businesses and underserved consumers.

Its mandate includes providing partial credit guarantees to reduce lending risks, improve access to finance and promote financial inclusion.

 Tinubu pledged that his administration would continue expanding access to formal credit across the country, saying: “We will keep widening that road until the opportunities our reforms create reach homes and businesses in every part of Nigeria.