NCGC guarantees N64.13bn loans to businesses, individuals

The National Credit Guarantee Company (NCGC) has supported N64.13 billion in loans to businesses and individuals since it began operations, expanding access to finance for Nigerians lacking conventional collateral.

The ‌‌‍‌‍⁠⁠‍‌‌‍⁠‌‍‍‍‌Managing Director and Chief Executive Officer of NCGC, Bonaventure Okhaimo, disclosed this on Tuesday at a news conference on the company’s performance and implementation of its mandate at the State House, Abuja.

He said the company had deployed N30.19 billion in credit guarantees to support the loans, enabling financial institutions to finance viable businesses and individuals they might otherwise reject because of inadequate collateral.

“Our value proposition is simple. We provide partial guarantees that de-risk lending, expand the supply of credit and catalyse economic growth,” Mr Okhaimo said.

He explained that NCGC does not lend directly but partners with financial institutions to share lending risks, providing guarantee coverage of up to 60 per cent under its standard framework.

“This allows lenders to say yes to borrowers they would otherwise turn away, often with less collateral and on better terms,” he said.

Mr Okhaimo said the company had reached 174,495 borrowers across the 36 states and the Federal Capital Territory as of 21 October, through partnerships with 19 financial institutions.

He said women accounted for 42.7 per cent of the beneficiaries, while 22,616 micro, small and medium enterprises (MSMEs) had accessed formal financing for the first time.

The NCGC boss said the interventions had supported an estimated 914,791 jobs, comprising 175,481 direct jobs and 739,310 indirect jobs associated with the businesses.

He added that the company recorded 7,731 beneficiaries under youth empowerment, noting that it intended to expand access to credit for young Nigerians.

To improve financing for women-owned businesses, Mr Okhaimo said the company introduced GuaranteeHer, a gender-responsive credit guarantee initiative launched on July 29, and formally unveiled to stakeholders in Lagos on Sept. 3.

He said the initiative targeted more than N100 billion in lending over five years, with at least 20,000 women-owned enterprises expected to benefit and generate more than 150,000 jobs.

“Rather than create yet another product, we strengthen the programmes women already know, so lenders can offer lower interest rates, less collateral and longer tenors,” he said.

Mr Okhaimo explained that GuaranteeHer provided coverage of up to 70 per cent of eligible loan exposure, compared with the standard 60 per cent, with a maximum guarantee obligation of N50 million per borrower.

He said the company had also introduced its Credit Advantage Series to help MSMEs improve financial literacy, understand credit requirements and strengthen their capacity to access and manage loans.

As part of the programme, he said NCGC was collaborating with the Nigeria Revenue Service on a virtual engagement scheduled for Wednesday to help businesses understand their tax obligations and requirements for participating in the formal economy.

The company commenced operations with N100 billion in capital, contributed equally by the Bank of Industry, Ministry of Finance Incorporated, Nigeria Sovereign Investment Authority, and Nigerian Consumer Credit Corporation (CREDICORP).

Established on 29 May, 2025, with President Bola Tinubu’s approval, NCGC obtained its operating licence from the Central Bank of Nigeria on 9 August, 2025, and operates under the oversight of the Federal Ministry of Finance.

Mr Okhaimo said the capital base could support a guarantee portfolio of up to N1 trillion under the company’s leverage framework, enabling it to mobilise additional financing for businesses and individuals.

“Our goal is clear: no viable Nigerian business should be denied credit simply because it lacks collateral,” he said. (NAN)