President Bola Ahmed Tinubu has said the National Credit Guarantee Company (NCGC) enabled participating financial institutions to provide N46.95 billion in loans during the company’s first year of operation.
According to the President, the NCGC issued guarantees that helped reduce the risks faced by financial institutions when lending to individuals and businesses with limited collateral or little credit history.
Tinubu disclosed the development in a statement posted on his official X account on Monday while highlighting the progress recorded by the credit guarantee scheme.
He said the scheme had supported 67,512 borrowers across 25 states and the Federal Capital Territory, including 11,374 women. About 33.5 per cent of beneficiaries were first-time formal borrowers, bringing more than 22,000 Nigerians into the formal credit system.
The President explained that the NCGC’s approach involves sharing part of the lending risk with participating financial institutions, making lenders more willing to provide credit to borrowers who might otherwise struggle to secure financing.
The company currently works with 19 financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.
Tinubu said the scheme is part of his administration’s broader effort to build a credit-based economy and improve access to formal financing for households, entrepreneurs and businesses.
He noted that easier access to credit could allow traders to replenish their stock, enable manufacturers to accept larger orders and help businesses expand their operations.
According to the President, businesses supported through the scheme are estimated to account for 661,291 direct and indirect jobs.
Tinubu also linked the NCGC to other government-backed financing initiatives, including the Nigerian Consumer Credit Corporation (CREDICORP), the Nigerian Education Loan Fund (NELFUND), the Bank of Industry and the Development Bank of Nigeria.
He said the government would continue working to expand access to formal credit so that more Nigerians and businesses can take advantage of opportunities created by its economic reforms.
