Nigeria’s National Credit Guarantee Company (NCGC) says it has supported ₦64.13 billion in loans to 174,495 borrowers across the country, using credit guarantees to help financial institutions lend to businesses and individuals who might otherwise struggle to access financing.
The company’s managing director and chief executive, Bonaventure Okhaimo, disclosed the figures at a media briefing in Abuja on Tuesday, October 27. According to the company’s performance report as of October 21, the loans were supported by ₦30.19 billion in credit guarantees provided through 19 participating financial institutions.
The NCGC does not lend directly to borrowers. Instead, it guarantees part of the credit risk on eligible loans, giving participating banks and other financial institutions greater confidence to finance customers who may not meet conventional collateral requirements.
Under its standard framework, the company covers up to 60 per cent of eligible loan exposure. This means lenders retain part of the risk and remain responsible for assessing borrowers, monitoring loans and recovering outstanding debts.
Of the 174,495 beneficiaries recorded by the company, 74,503, representing 42.7 per cent, were women. Another 22,616 people, or 12.96 per cent, accessed formal finance for the first time, while 7,731 beneficiaries were recorded under youth empowerment initiatives.
Trade and commerce, alongside agribusiness and agro-processing, accounted for just over 80 per cent of beneficiaries, according to the company. The figures suggest that the guarantee scheme is reaching sectors that are important to small-business activity, agricultural value chains and domestic trade.
The NCGC also reported that participating financial institutions associated 175,481 direct jobs with supported borrowers. The company estimated a further 739,310 indirect jobs using employment multipliers, bringing its reported employment impact to 914,791. The indirect figure is an estimate rather than a count of independently verified new jobs.
The company has also introduced GuaranteeHer, a framework designed to expand financing for women-owned businesses through existing bank lending programmes. It targets more than ₦100 billion in lending over five years and at least 20,000 women-owned enterprises, with guarantees of up to 70 per cent of eligible loan exposure under the initiative.
For Nigerian businesses, the programme’s practical value will depend on whether participating lenders translate the guarantees into accessible loans, reasonable interest rates, manageable collateral requirements and repayment terms that reflect borrowers’ cash flows. A guarantee reduces part of a lender’s risk, but it does not automatically make every applicant eligible or ensure that credit will be inexpensive.
The next test will be whether the company can expand participation among lenders, demonstrate sustainable loan performance and publish clearer evidence of the financing and employment outcomes associated with its interventions.
