President Bola Ahmed Tinubu has disclosed that the National Credit Guarantee Company (NCGC) has issued ₦21.59 billion in loan guarantees, enabling participating financial institutions to extend ₦46.95 billion in credit to businesses and borrowers.
The President made this known in a statement posted on his official X handle, saying the development represented progress in the Federal Government’s drive to expand access to credit and move the country towards a credit-based economy.
According to him, every ₦1 in guarantees issued by NCGC has helped unlock about ₦2.17 in credit.
Tinubu said the NCGC was established to address the difficulty viable businesses often face in accessing finance because of inadequate collateral or limited credit history.
He explained that the company shares part of the lending risk with participating financial institutions, giving them greater confidence to lend to businesses and borrowers who might otherwise be denied credit.
The President said NCGC currently works with 19 financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.
He disclosed that 67,512 borrowers across 25 states and the Federal Capital Territory had so far received credit backed by NCGC.
Of the beneficiaries, 11,374 are women, while 33.5 per cent are first-time formal borrowers.
Tinubu said more than 22,000 Nigerians had therefore entered the formal credit system for the first time, giving them an opportunity to build credit records through successful repayments.
The President also said NCGC estimated that businesses supported through its guarantees accounted for 661,291 direct and indirect jobs.
He noted that access to credit could enable traders to restock, while manufacturers could use financing to acquire machinery and fulfil larger orders.
Tinubu also cited other government-backed financing initiatives, including the Consumer Credit Corporation (CREDICORP), the Nigerian Education Loan Fund (NELFUND), the Bank of Industry and the Development Bank of Nigeria.
He said the various initiatives were part of efforts to build institutions that would make credit more accessible to Nigerians and businesses.
“This is how we move from reforms to opportunities. Our reforms laid the foundation. Credit gives Nigerians the means to build on it,” the President said.
He added that the Federal Government would continue to widen access to credit so that the opportunities created by its reforms could reach households and businesses across the country.
“Promise made, Promise kept. We are moving from reforms to opportunities. Nigeria First,” Tinubu said.
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