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President Bola Tinubu has disclosed that 67,512 Nigerians across 25 states and the Federal Capital Territory (FCT) have so far accessed credit backed by the National Credit Guarantee Company (NCGC).
Tinubu made the disclosure yesterday in a series of posts on his official X handle as Nigeria prepares to mark its 66th Independence anniversary.
According to the President, NCGC has issued ₦21.59 billion in guarantees, enabling participating financial institutions to extend ₦46.95 billion in loans to beneficiaries.
He said 11,374 of the beneficiaries were women, while 33.5 per cent were first-time formal borrowers.
“NCGC has issued ₦21.59 billion in guarantees. On the strength of those guarantees, participating lenders have extended ₦46.95 billion in loans. That means every ₦1 in guarantees has helped unlock about ₦2.17 in credit,” Tinubu said.
“So far, 67,512 borrowers across 25 states and the FCT have received credit backed by NCGC. 11,374 are women. And 33.5 percent are first-time formal borrowers.
“For more than 22,000 Nigerians, this is their first entry into the formal credit system. They now have a credit record they can build. Each successful repayment strengthens that record and can make the next loan easier to secure.”
The President said the initiative was part of his administration’s effort to move Nigeria towards a credit-based economy and fulfil a promise he made before assuming office.
“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,” he said.
“That promise was about something practical. A worker with access to credit can buy what the family needs and pay over time, and a small business can invest today against the income it expects tomorrow.”
Tinubu said the Federal Government had been building institutions to expand access to finance, noting that CREDICORP provides consumer credit, while students can access education financing through NELFUND and businesses continue to receive loans from the Bank of Industry and Development Bank of Nigeria.
He explained that the NCGC was created to address one of the major challenges facing businesses seeking loans the inability to provide sufficient collateral or demonstrate a credit history.
“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,” the President said.
“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 currently works with 19 financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.
He added that the scheme had supported employment through the businesses that benefited from the credit guarantees.
“Credit matters because of what people can do with it. A trader can restock before the festive season,” Tinubu said.
“When a manufacturer takes a bigger order and buys another machine to fill it, another Nigerian gets a job.”
According to the President, businesses supported through the scheme account for an estimated 661,291 direct and indirect jobs.
“This is how we move from reforms to opportunities,” he said, adding that the Federal Government would continue to expand the programme.
“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.
“We will 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.”
