Tinubu: NCGC unlocks ₦46.95bn credit for 67,512 Nigerians

By Kazeem Ugbodaga

President Bola Ahmed Tinubu has said his administration’s push to build a credit-based economy is beginning to translate into increased access to formal financing, with the National Credit Guarantee Company (NCGC) unlocking ₦46.95 billion in loans for 67,512 borrowers within its first year of operations.

Tinubu, in a statement on Monday, said the NCGC had provided ₦21.59 billion in guarantees, enabling participating financial institutions to extend more than twice that amount in credit to businesses and individuals across 25 states and the Federal Capital Territory as of August 2026.

The President said the initiative was established to address one of the major obstacles confronting small businesses: the difficulty of obtaining loans when borrowers lack sufficient collateral or an established credit history.

According to Tinubu, the NCGC shares part of the lending risk with participating financial institutions, giving lenders greater confidence to finance viable businesses and borrowers who might otherwise be excluded from formal credit.

He explained that the company currently works with 19 financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.

Tinubu said the impact of the scheme went beyond the volume of money disbursed, pointing to the number of Nigerians entering the formal credit system for the first time.

He said 33.5 per cent of NCGC beneficiaries, more than 22,600 borrowers, were first-time formal borrowers, giving them an opportunity to establish credit records that could improve their access to future financing.

The President also highlighted the participation of women, with 11,374 women-owned businesses benefiting from NCGC-backed financing during the period under review.

Tinubu said access to credit was important because of its potential to enable businesses to expand, increase production, take on larger orders and create employment.

He added that the NCGC estimates that businesses supported through its intervention account for 661,291 direct and indirect jobs, according to figures released by the company.

The President linked the development to his broader economic reform agenda, which includes expanding consumer and business credit through institutions such as the Nigeria Consumer Credit Corporation (CREDICORP), the Nigeria Education Loan Fund (NELFUND), the Bank of Industry and the Development Bank of Nigeria.

Tinubu said the objective was to move Nigerians away from an economy where access to finance is heavily dependent on existing wealth or collateral, toward one in which individuals and viable businesses can use credit to invest, grow and build financial histories.

The NCGC, which commenced operations in July 2025 with an initial capital base of ₦100 billion, was established as a Federal Government-backed institution to expand access to financing through partial credit guarantees, co-guarantees and technical assistance.

As the scheme enters its next phase, NCGC is placing greater emphasis on women-owned and women-led businesses through GuaranteeHer, an initiative targeting more than ₦100 billion in financing for over 20,000 women-owned businesses within five years.

Tinubu said his administration would continue widening access to formal credit, arguing that the success of its economic reforms would ultimately be measured by how effectively Nigerians can use the opportunities created by those reforms to build businesses, secure livelihoods and improve their economic prospects.