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President Bola Tinubu has highlighted the growing impact of the National Credit Guarantee Company (NCGC), which has facilitated ₦46.95 billion in loans in its first year, with women and thousands of first-time borrowers among the beneficiaries.
The President disclosed that 67,512 borrowers across 25 states and the Federal Capital Territory had accessed credit backed by the scheme, including 11,374 women, while 33.5 per cent of the beneficiaries were first-time formal borrowers.
According to him, more than 22,000 Nigerians who previously had no access to formal credit have now entered the system, gaining an opportunity to establish credit histories that could improve their chances of securing future loans.
Tinubu, in a post on his verified X handle, @officialABAT, said the achievements reflected his administration’s commitment to expanding financial inclusion and removing barriers that prevent viable businesses and individuals from accessing credit.
He disclosed that the NCGC had issued ₦21.59 billion in guarantees, enabling participating financial institutions to extend ₦46.95 billion in loans, representing approximately ₦2.17 in credit for every ₦1 guaranteed.
The President said the initiative was designed to address the persistent difficulties faced by small businesses and borrowers who lack sufficient collateral or established credit histories to qualify for bank loans.
He explained that the NCGC shares part of the lending risk with participating financial institutions, giving them greater confidence to extend credit to borrowers who might otherwise be excluded from the formal financial system.
“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,” Tinubu said.
He noted that the initiative was part of a broader strategy to translate economic reforms into tangible opportunities for Nigerians, particularly entrepreneurs who require financing to expand their businesses and create employment.
The NCGC currently operates through 19 financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.
Tinubu said the scheme was helping to expand access to credit beyond established borrowers, particularly among Nigerians who had previously been unable to secure formal loans.
The inclusion of more than 22,000 first-time borrowers, he said, was particularly significant because access to formal credit would enable them to build credit records through successful repayments, potentially improving their eligibility for subsequent loans.
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“They now have a credit record they can build. Each successful repayment strengthens that record and can make the next loan easier to secure,” he said.
The President also highlighted the potential of accessible credit to stimulate economic activities, noting that traders could restock their businesses, while manufacturers could invest in additional machinery to meet larger orders and create employment.
He said businesses supported by the NCGC were estimated to account for 661,291 direct and indirect jobs, underscoring the potential employment impact of improved access to financing.
“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.
The President identified the NCGC as one of several institutions established or strengthened by his administration to widen access to financing for different categories of Nigerians.
Others include the Credit Corporation (CREDICORP), which provides consumer credit to working Nigerians; the Nigerian Education Loan Fund (NELFUND), which finances students’ education; and the Bank of Industry and Development Bank of Nigeria, which provide loans to businesses.
Tinubu said these institutions were designed to address different financing needs and create an economy in which individuals and businesses could access credit to meet their immediate needs and pursue long-term growth.
He maintained that the credit guarantee scheme was helping to bridge the gap between viable businesses and financial institutions by reducing the risks associated with lending to borrowers without conventional collateral.
“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.
Tinubu reaffirmed his administration’s commitment to expanding the scheme’s reach, saying the government would continue to widen access to credit so that more households and businesses across the country could benefit from its economic reforms.
He added that the ultimate objective was to ensure that the opportunities created by the reforms translated into improved livelihoods, business expansion and employment across Nigeria.
“Promise made, Promise Kept. We are moving from reforms to opportunities. Nigeria First,” the President declared.
