Tinubu reveals NCGC loans hit N46.95 billion in first year

President Bola Tinubu has announced that the National Credit Guarantee Company (NCGC) has unlocked N46.95 billion in loans for businesses and individuals in its first year of operation.

The President explained that the company provided N21.59 billion in guarantees. This helped financial institutions to give out more than twice that amount in loans to borrowers who might find it hard to get formal loans.

He shared this information in a statement on Monday, showcasing the federal government’s efforts to improve access to credit for both businesses and individuals.

The NCGC started operations in July 2025. It is a Federal Government-backed organization aimed at lowering the risk for lenders and increasing access to funds for eligible businesses, especially micro, small, and medium enterprises (MSMEs).

NCGC supports 67,512 borrowers

According to President Tinubu, the NCGC is currently working with 19 financial institutions. This includes 13 commercial banks, three micro-finance banks, and three development finance institutions.

He stated that 67,512 borrowers across 25 states and the Federal Capital Territory received loans that were backed by the company.

Among these borrowers, 11,374 were women, and 33.5 percent were first-time formal borrowers. This means over 22,000 borrowers got into the formal credit system for the first time through loans backed by the NCGC, according to the President.

Recent data from the company shows that the N21.59 billion in guarantees led to N46.95 billion in loans. This represents a credit mobilisation ratio of 2.17.

The NCGC takes on part of the risk for qualifying loans, while the financial institutions are still responsible for checking borrowers, overseeing facilities, and collecting repayments.

Importance of the guarantee

President Tinubu noted that many good businesses struggle to get bank loans because their owners lack enough collateral or a formal credit history.

He explained that the guarantee system aims to give lenders more confidence to approve loans for these businesses and borrowers.

He gave examples of how access to credit can help businesses buy stock, purchase equipment, and take on bigger orders. This could lead to job creation and business growth.

The NCGC estimates that businesses supported through its efforts have created 661,291 direct and indirect jobs, as stated by Mr Tinubu.

He added that these figures show how the government’s reforms can provide financing to Nigerians who were previously left out of the formal credit market.

Women make up a smaller share

The NCGC’s first-year data also shows that women made up 11,374 of the 67,512 borrowers, which is about 16.8 percent.

This smaller share has led the company to focus more on women-owned and women-led businesses through its GuaranteeHer initiative.

This program aims to secure over N100 billion in funding for more than 20,000 women-owned businesses over five years. It is also expected to create over 150,000 direct and indirect jobs.

Through this initiative, the NCGC plans to offer higher risk coverage for qualifying lending portfolios. Participating financial institutions are expected to pass on the benefits of reduced lending risks to borrowers, such as lower interest rates and less collateral required.

The focus on women comes as there are ongoing concerns about access to formal finance for women entrepreneurs. They often find it harder to meet the usual lending requirements.

Government’s credit programs

President Tinubu mentioned that the NCGC is part of a broader strategy by his administration to shift Nigeria towards a credit-based economy.

He pointed to the Nigerian Consumer Credit Corporation (CREDICORP), which gives consumer credit, and the Nigerian Education Loan Fund (NELFUND), which provides student loans. Other lending includes support from the Bank of Industry and Development Bank of Nigeria.

The NCGC was created as part of this larger credit framework, with the Federal Government, including the Bank of Industry, Ministry of Finance Incorporated, and Nigeria Sovereign Investment Authority, among the key players in its establishment.

The President stated that the government will keep expanding access to credit so that more Nigerians and businesses can use formal financing to invest, grow, and create jobs.

“We will keep widening that road until the opportunities our reforms create reach homes and businesses in every part of Nigeria.”