In a move to revitalise Nigeria’s credit ecosystem, the Federal Government has unveiled the National Credit Guarantee Company Limited (NCGC), backed with an initial capital of ₦100 billion. The newly launched institution aims to ease access to credit for Micro, Small, and Medium Enterprises (MSMEs) and other underserved sectors of the economy.
At a stakeholders’ engagement meeting held to mark the take-off of the NCGC, the company’s Managing Director and Chief Executive Officer, Bonaventure Okhaimo, stated that the firm would not disburse loans directly but will offer partial credit guarantees to cover a portion of potential defaults.
“This innovative approach addresses one of the biggest challenges in Nigeria’s credit market — the reluctance of lenders to give out loans due to perceived high risks,” Okhaimo said. “With NCGC’s support, financial institutions can extend more credit, knowing that some of the risk is shared.”
Nigeria’s MSMEs, which account for over 90 percent of businesses across the country, have long struggled to access affordable credit due to lack of collateral and limited fallback options. The NCGC seeks to fill this gap by guaranteeing loans and encouraging financial institutions to expand their credit portfolios without fear of significant losses.
The company will prioritise several strategic areas, including MSME expansion, support for local manufacturers, consumer credit to stimulate the economy, and broader financial inclusion. It will also work to strengthen participating financial institutions through technical partnerships and advisory services.
To ensure long-term success, Okhaimo revealed that the NCGC will leverage technology, data analytics, capacity-building programmes, and strategic partnerships. Public sensitisation and policy advocacy will also be integral to the company’s operations, with the goal of creating a more credit-friendly environment.
Delivering a keynote address at the event, renowned economist and founder of B. Adedipe Associates Limited, Dr. ‘Biodun Adedipe, praised the establishment of the NCGC as a long-overdue intervention.
“NCGC is the missing link in Nigeria’s economic development chain,” Adedipe noted. “It has the potential to transform credit access, drive industrialisation, and power inclusive growth. The major risks to guard against are moral hazard and political interference — but with clear structures and competent leadership, the company can thrive.”
He added that credit guarantee schemes are globally recognised tools for de-risking financial systems and closing credit gaps, especially in developing economies.
Analysts believe that if the NCGC is implemented effectively, it could significantly reduce dependence on informal lending channels, unlock growth for small businesses, and accelerate Nigeria’s journey toward a more inclusive and industrialised economy.
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