By David Oluwatosin
President Bola Tinubu has disclosed that the National Credit Guarantee Company (NCGC) facilitated N46.95 billion in loans for 67,512 Nigerians and businesses within its first year of operation.
Tinubu, who disclosed this on Monday through his verified X handle, said the loans were backed by N21.59 billion in guarantees issued by the NCGC.
According to the President, the figures mean the scheme generated approximately N2.17 in credit for every N1 covered by its guarantees.
He said the performance demonstrated the Federal Government’s commitment to building a credit-based economy and removing traditional collateral barriers that have prevented many individuals and viable businesses from accessing financing.
Tinubu said NCGC-backed lending had reached beneficiaries across 25 states and the Federal Capital Territory, with 11,374 women among the 67,512 beneficiaries.
He added that 33.5 per cent of the beneficiaries were first-time formal borrowers, representing more than 22,000 Nigerians gaining access to the formal credit system for the first time.
The President said borrowers who successfully repay their loans would establish credit records, potentially improving their ability to secure financing in the future.
“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,” Tinubu said.
He added that access to credit could enable workers to meet immediate household needs while allowing businesses to invest ahead of expected income.
Tinubu explained that the NCGC forms part of a broader credit infrastructure being developed by his administration alongside the Nigeria Consumer Credit Corporation (CREDICORP), Nigerian Education Loan Fund (NELFUND), Bank of Industry and Development Bank of Nigeria.
According to him, CREDICORP focuses on consumer credit for working Nigerians, while NELFUND provides education financing for students.
He said the NCGC was established to address the reluctance of financial institutions to lend to viable businesses whose owners lack sufficient collateral or established credit histories.
“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,” he said.
The President explained that the NCGC shares part of the lending risk with participating financial institutions, giving lenders greater confidence to extend credit to borrowers who might otherwise be excluded.
The company operates a partial credit guarantee model, with guarantees typically covering up to 60 per cent of outstanding loan principal, although higher coverage may apply to some strategic categories.
Tinubu said 19 financial institutions currently participate in the scheme, comprising 13 commercial banks, three microfinance banks and three development finance institutions.
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He added that businesses supported under the guarantee programme were estimated to account for 661,291 direct and indirect jobs.
“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,” the President said.
He described the expansion of formal credit as an important link between the administration’s economic reforms and the opportunities available to Nigerians.
The NCGC was established following a presidential mandate in August 2024 to ease financing constraints affecting small businesses and underserved consumers.
Its responsibilities include reducing lending risks through partial guarantees, expanding access to finance and promoting financial inclusion.
Tinubu said the Federal Government would continue efforts to broaden access to formal credit across the country.
“We will keep widening that road until the opportunities our reforms create reach homes and businesses in every part of Nigeria,” he said.
The President described the initiative as part of his administration’s broader effort to translate economic reforms into tangible opportunities by expanding access to finance for households and businesses.
