Vanessa Obioha
The National Credit Guarantee Company (NCGC) has formalised strategic partnerships with leading Participating Financial Institutions (PFIs) through the signing of a Memorandum of Understanding (MoU).
At the ceremony, which took place on Thursday at Lagos Continental Hotel, Victoria Island, about 18 PFIs represented by top executives from the financial services sector, development partners, and key stakeholders were in attendance.
Through this partnership, NCGC will provide credit guarantee solutions that de-risk lending to youth and women-led enterprises, while also supporting Micro, Small, and Medium Enterprises (MSMEs), local manufacturers, and underserved credit consumers. By reducing barriers to finance, PFIs are better positioned to extend credit to underserved businesses and households, while NCGC absorbs a share of the risk.
Speaking at the event, Mr. Bonaventure Okhaimo, Managing Director/CEO of NCGC, emphasised that the initiative is not just about signing documents, it is about forging a bold partnership that will reshape how credit is accessed in Nigeria.
Okhaimo also noted that MSMEs, which contribute nearly half of Nigeria’s GDP, have long faced barriers to affordable financing due to perceived risks. According to him, the size of MSMEs’ access to finance currently is less than seven per cent. He projects that with the contributions of NCGC in the next five years, it will increase to 10 or 15 per cent.
NCGC, he said, was established to bridge this gap through innovative guarantee products, including individual guarantees for term loans (up to 5 years) and working capital (up to 24 months), ranging from N50 million to N10 billion; portfolio guarantees with single obligor limits of N50 million and portfolio caps of N5 billion; partial credit guarantees covering up to 60% of loan value; and co-guarantees and technical assistance to support PFIs.
Drawing inspiration from successful global models in India, South Korea, and the UK, NCGC is poised to catalyse inclusive growth and financial stability in Nigeria. The pilot phase will focus on high-impact sectors such as agriculture, fashion, green energy, export-oriented businesses, and education, and target women and youth-led businesses.
Okhaimo sees the largest opportunity for growth in youths.
“We have a very huge young population,” he said. “Unemployment is rising, and these are the people who are very creative and innovative. The challenge has always been their inability to access finance when they have a business idea. What most of them do is to seek financial assistance from their family members but that does not take them anywhere.”
With NCGC, Okhaimo believes that youths can boldly walk into banks to access loans.
Ms. Tinuola Aigwedo, Executive Director of Strategy and Operations, further emphasised the transformative potential of the initiative:
“This partnership is not just about financial inclusion, it’s about economic empowerment. By unlocking access to credit for youth and women entrepreneurs, we’re laying the foundation for a more resilient and equitable economy.”
She reiterated that the onboarding of PFIs is a major milestone in fulfilling NCGC’s mandate, aligning directly with the Renewed Hope Agenda of President Bola Ahmed Tinubu, GCFR, which prioritises youth empowerment, women’s economic inclusion, and support for local enterprises.
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