President Bola Tinubu has announced that the National Credit Guarantee Company (NCGC) facilitated N46.95 billion in loans within its first year of operations, marking a significant step in expanding access to formal credit for Nigerian businesses and individuals. The statement, released on Monday, highlighted the federal government’s efforts to address systemic barriers to financing, particularly for micro, small, and medium enterprises (MSMEs).
The NCGC, established in July 2025 as a government-backed institution, operates by absorbing a portion of the risk associated with qualifying loans, thereby encouraging financial institutions to extend credit to borrowers who might otherwise struggle to secure formal financing. This model has enabled participating banks and lenders to mobilize over twice the amount of guarantees provided, according to the president’s statement.
Within its first year, the NCGC supported 67,512 borrowers across 25 states and the Federal Capital Territory (FCT). Of these, 11,374 were women, and 33.5% of borrowers accessed formal credit for the first time. President Tinubu emphasized that this milestone represents a critical expansion of financial inclusion, with over 22,000 individuals entering the formal credit system through the initiative.
The NCGC’s risk-sharing mechanism involves absorbing an agreed portion of loan risk, while financial institutions retain responsibility for borrower assessments, monitoring, and repayment collection. This structure aims to mitigate the reluctance of lenders to extend credit to businesses lacking collateral or formal credit histories, as noted by the president. He cited examples of how access to credit could enable businesses to restock, invest in equipment, and scale operations, potentially creating jobs and stimulating economic growth.
According to the NCGC, the N21.59 billion in guarantees it provided generated N46.95 billion in loans, reflecting a 2.17-fold credit mobilization ratio. This figure underscores the institution’s role in leveraging public funds to catalyze private-sector lending. The president also highlighted that businesses supported by the NCGC account for 661,291 direct and indirect jobs, emphasizing the program’s broader economic impact.
Despite these achievements, the NCGC’s first-year data revealed that women constituted 16.8% of borrowers, prompting the institution to prioritize women-owned and women-led businesses through its GuaranteeHer initiative. The program aims to channel over N100 billion in financing to more than 20,000 women-led enterprises over five years, with a target of creating 150,000 direct and indirect jobs. The initiative includes measures such as reduced collateral requirements and lower interest rates for eligible borrowers.
The NCGC’s focus on gender inclusion aligns with longstanding challenges faced by women entrepreneurs, who often encounter systemic barriers in accessing formal finance. By offering higher risk coverage for lending portfolios, the initiative seeks to address these disparities and empower female business owners. President Tinubu described the NCGC as part of a broader strategy to transition Nigeria toward a credit-based economy, alongside institutions like the Nigerian Consumer Credit Corporation (CREDICORP) and the Nigerian Education Loan Fund (NELFUND).
The NCGC’s establishment involved collaboration between the federal government and key financial institutions, including the Bank of Industry, the Ministry of Finance Incorporated, and the Nigeria Sovereign Investment Authority. This partnership reflects the administration’s commitment to building a robust credit infrastructure to support economic development. Tinubu reiterated that the government would continue expanding credit access to ensure that reforms benefit all Nigerians, stating, “We will keep widening that road until the opportunities our reforms create reach homes and businesses in every part of Nigeria.”
The public-interest implications of the NCGC’s work are significant, as expanded credit access can drive entrepreneurship, job creation, and economic resilience. By targeting MSMEs and marginalized groups, the initiative addresses structural inequalities in Nigeria’s financial system. However, challenges remain, including ensuring equitable distribution of benefits and addressing potential risks associated with increased lending. Analysts note that the success of the NCGC will depend on sustained government support and the effectiveness of its risk-mitigation strategies.
The NCGC’s first-year performance has drawn attention as a model for other African nations seeking to enhance financial inclusion. Its emphasis on risk-sharing and targeted support for women entrepreneurs offers a replicable framework for addressing credit gaps in emerging markets. However, critics argue that long-term success will require complementary policies, such as improving financial literacy and strengthening regulatory oversight.
President Tinubu’s remarks underscore the administration’s focus on economic reforms as a cornerstone of its agenda. The NCGC’s achievements align with broader efforts to diversify Nigeria’s economy and reduce reliance on oil revenues. By fostering a culture of credit-based growth, the government aims to create a more dynamic and inclusive economic landscape. This approach also responds to growing public demand for opportunities that reflect the aspirations of Nigeria’s youth and entrepreneurial community.
The NCGC’s progress highlights the potential of public-private partnerships in driving financial innovation. Its collaboration with 19 financial institutions—including 13 commercial banks, three micro-finance banks, and three development finance institutions—demonstrates the scalability of its model. As the program matures, its impact on Nigeria’s economic trajectory will be closely monitored, with stakeholders emphasizing the need for transparency and accountability in its operations.
The NCGC’s first-year results provide a foundation for future expansion, but sustained momentum will require addressing challenges such as bureaucratic delays, limited awareness among potential borrowers, and the need for continuous capacity-building. The government’s commitment to widening credit access, as articulated by Tinubu, signals a long-term vision for inclusive growth. However, the effectiveness of this vision will ultimately depend on the ability to translate policy into tangible outcomes for Nigerians.
The NCGC’s role in Nigeria’s financial ecosystem underscores the importance of institutional innovation in addressing systemic barriers to economic participation. By prioritizing risk-sharing, gender inclusion, and targeted support for MSMEs, the initiative represents a strategic effort to foster a more resilient and equitable economy. As the program evolves, its success will serve as a benchmark for similar initiatives across the continent.