President Bola Tinubu says 67,512 Nigerians across 25 states and the Federal Capital Territory have accessed credit backed by the National Credit Guarantee Company (NCGC) within its first year of operations.
Tinubu disclosed this on Monday while highlighting the progress of the government’s efforts to expand access to formal credit and move the Nigerian economy towards a credit-based system.
According to the president, the NCGC has issued N21.59 billion in guarantees, which has helped participating financial institutions provide N46.95 billion in loans to borrowers.
He said the figures mean that every N1 provided in guarantees helped unlock approximately N2.17 in credit.
Of the 67,512 beneficiaries, 11,374 are women, while 33.5 per cent are first-time formal borrowers.
Tinubu noted that more than 22,000 Nigerians have entered the formal credit system for the first time through the programme, giving them an opportunity to establish credit records that could make future borrowing easier when they maintain successful repayment histories.
“For more than 22,000 Nigerians, this is their first entry into the formal credit system. They now have a credit record they can build.”
The initiative is part of the government’s broader plan to expand access to consumer and business financing. The National Credit Guarantee Company was established to help address one of the major challenges facing borrowers and businesses: lenders’ concerns about risk when applicants have limited collateral or little credit history.
Tinubu recalled that during his campaign, he promised to move Nigeria towards a credit-based economy and establish mechanisms that would make it easier for small businesses and individuals to access financing.
“When I sought your mandate, I promised to move Nigeria towards a credit-based economy and to establish a loan guarantee scheme that would help small businesses overcome the barriers that keep them from finance.”
He explained that the idea behind the policy was to allow workers and businesses to obtain financing for legitimate needs and repay over time, rather than relying solely on their available cash.
The president said the government has also developed other institutions to expand access to financing, including the Nigerian Consumer Credit Corporation (CREDICORP), the Nigeria Education Loan Fund (NELFUND), the Bank of Industry and the Development Bank of Nigeria.
Tinubu acknowledged that access to credit remains difficult for many viable businesses, particularly those without sufficient collateral or established credit histories.
He said the NCGC addresses part of that problem by sharing lending risks with participating financial institutions, giving lenders greater confidence to provide financing to borrowers who might otherwise struggle to secure loans.
The president said the NCGC currently works with 19 financial institutions comprising 13 commercial banks, three microfinance banks and three development finance institutions.
He also linked the expansion of credit to employment and economic activity, arguing that financing allows businesses to purchase stock, expand production and take on larger contracts.
According to figures cited by Tinubu, businesses supported through the scheme have contributed to an estimated 661,291 direct and indirect jobs.
“Credit matters because of what people can do with it. A trader can restock before the festive season.”
He added that a manufacturer receiving financing to expand production could create additional employment opportunities.
Tinubu said the credit programme is intended to ensure that the benefits of the government’s wider economic reforms reach individuals and businesses that have traditionally remained outside the formal financial system.
“Our reforms laid the foundation. Credit gives Nigerians the means to build on it.”
He said the government would continue expanding access to the scheme so that more Nigerians can participate in the formal credit system.
“We will keep widening that road until the opportunities our reforms create reach homes and businesses in every part of Nigeria.”
The president concluded by describing the progress recorded under the initiative as the fulfilment of a commitment made to Nigerians.
“Promise made, Promise kept. We are moving from reforms to opportunities. Nigeria First.”
The NCGC’s first-year figures show that its guarantees have so far supported credit access across 25 states and the FCT, with the company saying the programme is intended to expand financing for underserved borrowers and businesses.
