Tinubu: NCGC Guarantees N46.95bn Loans For 67,512 Nigerian Borrowers

Deji Elumoye in Abuja 

President Bola Tinubu has disclosed that the National Credit Guarantee Company (NCGC) has guaranteed N46.95 billion loans to Nigerian borrowers across the country.

According to him, a total of 67,512 borrowers across 25 states and the Federal Capital Territory (FCT) have so far accessed credit backed by the NCGC, including 11,374 women.

The president, who made this disclosure Monday on his verified X handle, @officialABAT, also noted that 33.5 per cent of the beneficiaries are first-time formal borrowers, bringing more than 22,000 Nigerians into the formal credit system for the first time.

He explained that NCGC has issued N21.59 billion in guarantees, enabling participating financial institutions to extend N46.95 billion in loans to Nigerians.

The president said the figures mean that every N1 provided in guarantees has helped unlock about N2.17 in credit, describing the development as part of his administration’s efforts to move Nigeria towards a credit-based economy.

Tinubu said: “They now have a credit record they can build. Each successful repayment strengthens that record and can make the next loan easier to secure.

“Credit matters because of what people can do with it. A trader can restock before the festive season. When a manufacturer takes a bigger order and buys another machine to fill it, another Nigerian gets a job. NCGC estimates that the businesses it has supported account for 661,291 direct and indirect jobs.”

He stressed that the development provides the beneficiaries with credit records they can build upon, adding that successful repayments could strengthen their records and improve their prospects of securing future loans.

The president said access to credit gives individuals and businesses the capacity to meet immediate needs and invest in future growth, citing traders who require funds to restock and manufacturers seeking to expand production and create jobs.

According to him, NCGC estimates that businesses supported through the scheme account for 661,291 direct and indirect jobs.

Tinubu recalled that while seeking the mandate of Nigerians, he promised to move the country towards a credit-based economy and establish a loan guarantee scheme to help small businesses overcome barriers to accessing finance.

He explained that the objective was to create a system where workers could access credit to meet family needs and repay over time, while small businesses could invest against anticipated future income.

The Federal Government, he said, has been building institutions to support that objective, including CREDICORP for consumer credit and NELFUND for student financing, while the Bank of Industry (BoI) and Development Bank of Nigeria continue to provide financing to businesses.

He described NCGC as an intervention designed to address one of the major obstacles confronting viable businesses seeking bank credit, particularly where entrepreneurs have limited collateral or no established credit history.

“This is how we move from reforms to opportunities. Our reforms laid the foundation. Credit gives Nigerians the means to build on it. Tens of thousands who stood outside formal credit a year ago are now inside, borrowing to grow.”

Tinubu explained that the company shares part of the lending risk with participating financial institutions, giving lenders greater confidence to extend credit to businesses and borrowers they might otherwise be reluctant to finance.

He said NCGC currently works with 19 financial institutions comprising 13 commercial banks, three microfinance banks and three development finance institutions.

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

Reflecting on the company’s first year of operations, Tinubu said the results demonstrated how government reforms could translate into opportunities for Nigerians, particularly those previously excluded from formal credit.

He reaffirmed his administration’s commitment to expanding access to credit until more households and businesses across the country are able to benefit from the opportunities created by ongoing economic reforms.

“Promise made, promise kept. We are moving from reforms to opportunities. Nigeria First,” the president further stated.