NCGC Guarantees N64bn Loans To 174,495 Nigerians

The National Credit Guarantee Company Limited (NCGC) has supported loans price N64.13 billion to 174,495 debtors throughout Nigeria, because the federal authorities intensifies efforts to develop entry to finance for companies and people.

The Managing Director and Chief Executive Officer of NCGC, Dr Bonaventure Okhaimo, disclosed this throughout a press briefing on the State House, Abuja.

Okhaimo stated the loans had been supported by ensures valued at N30.19 billion, representing roughly N2.12 in lending for each N1 assured by the corporate.

According to him, the programme efficiency report as of October 21, 2026, confirmed that the initiative had reached beneficiaries in all 36 states of the federation and the Federal Capital Territory by 19 taking part monetary establishments, together with industrial banks, microfinance banks and growth finance establishments.

He defined that NCGC was established to scale back lending dangers for monetary establishments and allow them to increase credit score to companies and people who may in any other case battle to safe loans, significantly due to insufficient collateral.

The firm doesn’t lend on to debtors however offers partial ensures to taking part monetary establishments, sharing the chance when eligible debtors fail to repay their loans.

Responding to questions on whether or not the intervention was making loans extra accessible or reasonably priced, Okhaimo stated the corporate’s major mandate was to enhance entry to finance, whereas its ensures might additionally assist scale back borrowing prices.

He defined that banks decide rates of interest by contemplating the price of funds, inflation and different financial components, in addition to a threat premium hooked up to debtors thought of extra prone to default.

According to him, the credit score assure scheme is designed to deal with the chance premium by lowering the potential losses banks face when lending to small companies.

He stated the association might encourage monetary establishments to scale back the extra costs related to lending to MSMEs, doubtlessly making loans extra reasonably priced.

Okhaimo, nevertheless, clarified that NCGC didn’t decide the rates of interest charged to beneficiaries as a result of the taking part monetary establishments had been liable for lending the cash.

He added that the corporate was additionally working with the Central Bank of Nigeria to discover methods credit score ensures might entice capital aid for lenders, a growth that might additional encourage lending to small companies.

The NCGC chief government stated the intervention was significantly necessary for entrepreneurs whose companies may be viable however who lacked the standard collateral required by banks.

He cited younger individuals working within the inventive and expertise sectors as examples of potential beneficiaries who may battle to safe financing as a result of they may not present the normal documentation and collateral demanded by lenders.

On the contribution of small companies to the financial system, Okhaimo stated estimates of the contribution of micro, small and medium-sized enterprises different relying on the financial indicator and supply.

He distinguished between their contribution to employment and their contribution to gross home product, explaining that the figures usually quoted for MSMEs didn’t essentially measure the identical factor.

The firm’s efficiency report confirmed that girls accounted for 74,503 debtors, representing 42.7 per cent of the full beneficiaries.

Additionally, 22,616 debtors, representing 12.96 per cent, accessed formal financing for the primary time, whereas 7,731 beneficiaries had been recorded below youth empowerment.

Okhaimo stated commerce and commerce, alongside agribusiness and agro-processing, accounted for greater than 80 per cent of beneficiaries supported by the scheme.

He additionally confirmed that the corporate offered ensures for agriculture, explaining that a few of its preliminary beneficiaries had been smallholder farmers introduced into the programme by an agricultural aggregator working in north-central Nigeria.

On employment, he disclosed that taking part monetary establishments reported 175,481 direct jobs related to the debtors supported by the scheme.

The firm estimated an additional 739,310 oblique jobs, bringing the full variety of jobs impacted to 914,791.

Explaining the figures, Okhaimo stated the direct employment numbers had been based mostly on info submitted by taking part monetary establishments, whereas oblique jobs had been calculated utilizing financial multipliers utilized to completely different sectors.

He defined that the methodology thought of the oblique financial actions generated by lending to companies, together with agricultural enterprises, whereas adjusting the estimates to replicate NCGC’s share of the lending threat.

The NCGC boss additionally highlighted the corporate’s GuaranteeHer initiative, a gender-responsive credit score assure framework designed to enhance entry to financing for women-owned companies.

Launched on July 29, 2026, and ceremonially unveiled on the firm’s first-anniversary stakeholders’ discussion board on September 3, the initiative is designed to strengthen current women-focused lending programmes operated by taking part monetary establishments.

Rather than introduce a wholly new lending product, GuaranteeHer offers an extra risk-sharing framework for current initiatives, together with Access Bank’s W Initiative, FirstBank’s FirstGem, FCMB’s SheVentures, Sterling’s Smart Women and Fidelity’s FundHer.

Under the programme, NCGC targets greater than N100 billion in lending over 5 years, financing not less than 20,000 women-owned MSMEs and supporting 150,000 jobs.

The initiative offers for assure protection of as much as 70 per cent of eligible mortgage publicity, with a most obligor restrict of N50 million per borrower.

An NCGC official stated the programme was designed to deal with boundaries girls entrepreneurs face in accessing financial institution loans, significantly the issue of offering typical collateral.

The official added that knowledge from the women-focused initiatives referenced throughout the briefing confirmed zero non-performing loans within the portfolios below dialogue.

On mortgage defaults and the corporate’s monetary publicity, an NCGC consultant stated the corporate was ready to honour legitimate claims submitted by taking part monetary establishments inside 30 days.

The consultant, nevertheless, disclosed that no taking part monetary establishment had filed a declare for cost as of Tuesday’s briefing.

The official additionally defined that credit score ensures might scale back among the bills related to securing typical loans, together with sure prices associated to perfecting collateral and registering safety preparations.

Such bills, the consultant stated, might improve the general price of borrowing for companies which might be required to offer typical collateral.

By lowering dependence on such preparations, the assure scheme might assist decrease some borrowing-related prices, though the rates of interest charged would nonetheless be decided by the lending establishments.

Established by the Federal Government on May 29, 2025, with the approval of President Bola Tinubu, NCGC was licensed by the Central Bank of Nigeria on August 9, 2025, and operates below the supervision of the Federal Ministry of Finance.

The firm has a capital base of N100 billion, with equal 25 per cent stakes held by the Bank of Industry, Ministry of Finance Incorporated, Nigeria Sovereign Investment Authority and Nigerian Consumer Credit Corporation (CREDICORP).

NCGC additionally maintains partnerships with establishments together with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the Central Bank of Nigeria, the Bank of Industry, the National Insurance Commission, the Nigeria Deposit Insurance Corporation and the Nigerian Agricultural Insurance-related assist ecosystem, alongside different growth companions.

The firm can also be working with the Federal Ministry of Women Affairs and Social Development on GuaranteeHer and with NIRSAL on a co-guarantee framework for agribusiness.

Okhaimo stated the corporate would deepen entry to credit score for ladies, younger individuals, MSMEs and productive sectors, develop its community of taking part monetary establishments, strengthen its capital base and digitise its assure administration processes.

He added that NCGC would proceed to offer capacity-building assist to assist companies change into credit-ready, together with by its Credit Advantage Series, which is scheduled to function the Nigeria Revenue Service on October 28, 2026.

He stated the corporate’s final goal was to make sure that viable Nigerian companies weren’t denied entry to credit score solely as a result of they lacked enough collateral.