President Bola Tinubu has announced that the National Credit Guarantee Company (NCGC) facilitated ₦46.95 billion in loans during its first year of operations, as the Federal Government seeks to improve access to credit for households, small businesses and other borrowers across Nigeria.
Tinubu disclosed the figures in a post on his official X account on Monday, describing the development as part of his administration’s efforts to expand access to formal financing and ensure that more Nigerians benefit from the country’s economic reforms.
The NCGC issued loan guarantees worth ₦21.59 billion during the period, enabling participating financial institutions to provide loans to 67,512 borrowers across 25 states and the Federal Capital Territory (FCT).
The initiative is designed to encourage banks and other participating lenders to extend credit to individuals and businesses that may struggle to secure loans under conventional lending arrangements.
Under the credit guarantee system, the government-backed company shares part of the lending risk with financial institutions, encouraging them to provide financing to eligible borrowers who might otherwise find it difficult to access credit.
The figures indicate that approximately ₦2.17 in loans was facilitated for every ₦1 in guarantees issued. This reflects the programme’s approach of using guarantees to support lending by financial institutions rather than having the government directly provide all the funds.
However, the extent to which the programme can sustain lending growth will depend on factors including borrowers’ ability to repay their loans, lenders’ participation and the continued availability of financing for eligible applicants.
Women Account for 16.8 Per Cent of Beneficiaries
Of the 67,512 borrowers reached during the first year, 11,374 were women, representing approximately 16.8 per cent of the total beneficiaries.
The figures highlight the participation of women in the programme while also raising questions about how access to formal credit can be expanded further among female entrepreneurs and other underserved groups.
Access to financing remains an important factor for small businesses seeking to expand their operations, purchase equipment, employ additional workers and manage day-to-day expenses.
For households, improved access to formal credit can also provide financing opportunities, although the terms of borrowing and borrowers’ ability to meet repayment obligations remain important considerations.
The NCGC has adopted two major approaches to providing guarantees: individual facility guarantees and portfolio guarantees.
Individual facility guarantees cover specific eligible credit facilities, while portfolio guarantees enable lenders to extend financing to groups of smaller borrowers under an agreed arrangement. The latter approach can help financial institutions process loans to smaller businesses more efficiently.
NCGC Began Operations in July 2025
The National Credit Guarantee Company commenced operations in July 2025, with a mandate to improve access to financing by reducing some of the risks financial institutions face when lending to eligible borrowers.
Its first-year performance represents an early indication of how government-backed credit guarantees can be used to encourage private-sector lending and broaden participation in the formal financial system.
The programme is also part of the Federal Government’s broader economic reform agenda, which seeks to create more opportunities for businesses and households through improved access to financial services.
Tinubu said the government would continue to expand the initiative to ensure that more Nigerians benefit from opportunities created by its economic policies.
“We will keep widening that road until the opportunities our reforms create reach homes and businesses in every part of Nigeria,” the President said.
The administration expects the continued expansion of credit-support programmes to help businesses access funding, strengthen economic activities and improve financial inclusion.
As the NCGC moves beyond its first year, its impact will depend not only on the volume of guarantees issued and loans facilitated but also on the number of businesses that can access affordable financing, sustain their operations and repay their loans successfully.
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