NCGC-backed loans reach N46.95bn in first year – Tinubu

President Bola Tinubu has said the National Credit Guarantee Company (NCGC) has helped unlock N46.95 billion in loans for businesses and individuals within its first year of operations.

The President said the company provided N21.59 billion in guarantees, allowing participating financial institutions to extend more than twice that amount in credit to borrowers who might otherwise struggle to secure formal loans.

He disclosed this in a statement on Monday highlighting the federal government’s efforts to expand access to credit for businesses and individuals.

The NCGC began operations in July 2025 as a Federal Government-backed credit guarantee institution designed to reduce the risk faced by lenders and expand access to finance for eligible businesses, particularly micro, small and medium enterprises (MSMEs).

NCGC reaches 67,512 borrowers

According to President Tinubu, the NCGC currently works with 19 financial institutions comprising 13 commercial banks, three micro-finance banks and three development finance institutions.

He said 67,512 borrowers across 25 states and the Federal Capital Territory had received credit backed by the company.

Of this number, 11,374 were women, while 33.5 per cent were first-time formal borrowers.

This means that more than 22,000 borrowers entered the formal credit system for the first time through loans backed by the NCGC, according to the President.

Recent figures released by the company also show that the N21.59 billion in guarantees had generated N46.95 billion in loans, representing a 2.17-fold credit mobilisation ratio.

The model allows the NCGC to absorb an agreed portion of the risk on qualifying loans while participating financial institutions retain responsibility for assessing borrowers, monitoring facilities and recovering repayments.

Why the guarantee matters

President Tinubu said many viable businesses struggle to obtain bank loans because their owners lack sufficient collateral or a formal credit history.

He explained that the guarantee mechanism was intended to give lenders greater confidence to extend credit to such businesses and borrowers.

He cited examples of how access to credit could help businesses restock, purchase equipment and take on larger orders, potentially supporting employment and expansion.

The NCGC estimates that businesses supported through its intervention account for 661,291 direct and indirect jobs, Mr Tinubu said.

He also added that the figures showed how the government’s reforms could translate into access to finance for Nigerians who had previously been excluded from the formal credit market.

Women account for smaller share

The NCGC’s first-year figures also show that women accounted for 11,374 of the 67,512 borrowers, or about 16.8 per cent.

The relatively small share has prompted the company to place greater emphasis on women-owned and women-led businesses through its GuaranteeHer initiative.

The programme is targeting more than N100 billion in financing for over 20,000 women-owned businesses over five years. It is also expected to support more than 150,000 direct and indirect jobs.

Under the initiative, the NCGC plans to provide higher risk coverage for eligible lending portfolios, with participating financial institutions expected to pass the benefits of reduced lending risks to borrowers through measures including lower interest rates and reduced collateral requirements.

The focus on women comes against longstanding concerns over access to formal finance for women entrepreneurs, who often face greater difficulty meeting conventional lending requirements.

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Government’s credit initiatives

President Tinubu said the NCGC was part of a wider effort by his administration to move Nigeria towards a credit-based economy.

He cited the Nigerian Consumer Credit Corporation (CREDICORP), which provides consumer credit, and the Nigerian Education Loan Fund (NELFUND), which provides student loans, alongside lending by the Bank of Industry and Development Bank of Nigeria.

The NCGC was established as part of this broader credit infrastructure, with the Federal Government, through institutions including the Bank of Industry, Ministry of Finance Incorporated and Nigeria Sovereign Investment Authority, among the institutions involved in its establishment.

The president said the government would continue to expand access to credit so that more Nigerians and businesses could use formal financing to invest, expand and create jobs.

“We will keep widening that road until the opportunities our reforms create reach homes and businesses in every part of Nigeria.”