The National Credit Guarantee Company (NCGC) has guaranteed loans worth N46.95 billion for 67,512 borrowers across 25 states and the Federal Capital Territory (FCT), as the Federal Government-backed institution seeks to expand access to formal credit for businesses and individuals.
The NCGC provided N21.59bn in guarantees to participating financial institutions, enabling them to extend about N46.95bn in credit as of August 2026, according to figures disclosed by President Bola Tinubu on Monday.
The intervention means that every N1 provided in guarantee cover supported approximately N2.17 in credit extended by participating lenders.
The credit guarantee programme, which commenced operations in July 2025, is designed to reduce the risks faced by lenders when extending credit to borrowers who may lack sufficient collateral or established credit histories.
Under the arrangement, the NCGC shares part of the lending risk with participating financial institutions, giving them greater capacity to extend loans to businesses and individuals who may otherwise have difficulty accessing formal financing.
The company currently works with 19 participating financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.
The intervention has also expanded access to formal credit for new borrowers, with about 33.5 percent of beneficiaries, representing more than 22,600 Nigerians, classified as first-time formal borrowers.
Women-owned businesses accounted for 11,374 of the beneficiaries under the scheme, highlighting the programme’s reach among segments of the economy that have historically faced difficulties accessing formal financing.
The NCGC said the businesses supported through its guarantee interventions have contributed to an estimated 661,291 direct and indirect jobs.
Tinubu, in a statement posted on his official X account, said the credit guarantee initiative was part of efforts to move Nigeria towards a credit-based economy by making financing more accessible to workers, entrepreneurs and businesses.
He said the guarantee mechanism was established to address one of the major barriers to business financing, particularly where viable businesses have limited collateral or lack a sufficient credit history.
According to the President, the NCGC takes on part of the lending risk alongside participating financial institutions, increasing lenders’ confidence to provide financing to borrowers who might otherwise be excluded from formal credit.
The President said the scheme was intended to complement other government-backed financing initiatives, including consumer credit through the CreditCorp, education financing through the Nigerian Education Loan Fund (NELFUND), and business lending by institutions such as the Bank of Industry and the Development Bank of Nigeria.
The NCGC’s first-year performance comes against persistent financing challenges faced by micro, small and medium enterprises, which often encounter high borrowing costs, collateral requirements and limited credit histories when seeking loans from conventional lenders.
By providing partial guarantees, the company’s model is intended to encourage financial institutions to increase lending without transferring responsibility for credit assessment and loan recovery away from the lenders.
The NCGC has said its guarantee structure is designed to mobilise private-sector financing rather than directly replace commercial lending, allowing participating institutions to retain exposure to the loans while receiving partial protection against qualifying credit losses.
The institution was established with an initial capital base of N100bn as part of the Federal Government’s broader effort to strengthen Nigeria’s credit infrastructure and improve access to finance.
With 67,512 borrowers already reached within its first year, the company is expected to focus on expanding the coverage of its guarantee programmes and bringing more underserved businesses and individuals into the formal credit market.
The expansion of formal credit access is also expected to give first-time borrowers an opportunity to establish credit histories, which can improve their ability to access financing from formal lenders in the future, subject to successful repayment and lenders’ credit assessments.
For businesses, the guarantee mechanism is intended to support access to working capital and investment financing, potentially enabling enterprises to expand operations, meet larger orders and invest in productive assets.
The NCGC’s first-year figures therefore point to a growing role for credit guarantees in Nigeria’s financial system, particularly as policymakers seek to deepen lending to productive sectors and broaden participation in formal finance.
