President Bola Ahmed Tinubu has said the Federal Government’s National Credit Guarantee Company (NCGC) unlocked N46.95 billion in loans for 67,512 Nigerians and businesses within its first year of operations.
Tinubu said the financing was mobilised through N21.59 billion in guarantees issued by the company, translating to about N2.17 in lending for every N1 guaranteed.
The President disclosed this in a statement posted on his verified X handle, @officialABAT, where he said the figures reflected his administration’s efforts to move Nigeria towards a credit-based economy.
According to Tinubu, the NCGC’s first-year performance showed that its N21.59 billion in risk coverage unlocked N46.95 billion in financing for beneficiaries across 25 states and the Federal Capital Territory.
He said 11,374 of the beneficiaries were women, while 33.5 per cent of the total beneficiaries were first-time formal borrowers, bringing more than 22,000 Nigerians into the formal credit system for the first time.
Tinubu explained that access to formal credit would enable new borrowers to establish credit histories, potentially improving their chances of securing additional financing as they repay their loans.
He said the NCGC was established to address one of the major challenges facing businesses seeking loans insufficient collateral and limited 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.
“We established NCGC to help change that. It carries part of the lending risk with participating financial institutions, giving them greater confidence to lend to businesses and borrowers they might otherwise turn away,” Tinubu said.
The NCGC provides partial credit guarantees, sharing part of lenders’ exposure and reducing the risks associated with lending to underserved businesses and consumers. Its guarantees typically cover up to 60 per cent of outstanding loan principal, although higher coverage may apply to some strategic categories.
Tinubu said the company currently works with 19 participating financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.
He added that businesses supported under the guarantee scheme were estimated to account for 661,291 direct and indirect jobs.
The President said access to credit was important not only because of the funds disbursed but also because it could help businesses expand, stimulate economic activity and create employment.
“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,” he said.
Tinubu said the expansion of credit remained a critical link between the administration’s economic reforms and opportunities for Nigerians.
“This is how we move from reforms to opportunities. Our reforms laid the foundation. Credit gives Nigerians the means to build on it. Tens of thousands who stood outside formal credit a year ago are now inside, borrowing to grow,” he said.
The NCGC was established following a presidential mandate in August 2024 to address financing challenges facing small businesses and underserved consumers.
Its mandate includes providing partial credit guarantees, reducing lending risks, improving access to finance and promoting financial inclusion.
Tinubu pledged that his administration would continue to expand access to formal credit across the country, saying the government would “keep widening that road until the opportunities our reforms create reach homes and businesses in every part of Nigeria.”
“Promise made, promise kept. We are moving from reforms to opportunities. Nigeria First,” the President added.
