NCGC, Financial Institutions Make Access to Funds for Business Easier

By Aduragbemi Omiyale

A Memorandum of Understanding (MoU) has been signed between the National Credit Guarantee Company (NCGC) and leading Participating Financial Institutions (PFIs) to expand credit access for business owners, especially those owned by youth and women.

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.

At the signing ceremony in Lagos on Thursday, the chief executive of NCGC, Mr Bonaventure Okhaimo, said this initiative would reshape how credit is accessed in Nigeria, noting that MSMEs, which contribute nearly half of Nigeria’s GDP, have long faced barriers to affordable financing due to perceived risks.

Drawing inspiration from successful global models in India, South Korea, and the UK, NCGC is poised to catalyze 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.

As part of this pilot phase, NCGC is committing N5 billion in credit guarantees to each onboarded Participating Financial Institution, specifically targeting women-owned and youth-led MSMEs. This bold investment is expected to stimulate job creation, strengthen value chains, and improve key financial metrics like credit-to-GDP ratio.

In a chat with newsmen at the event, the Executive Director of Strategy and Operations at NCGC, Ms Tinuola Aigwedo, 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 Tinubu, which prioritizes youth empowerment, women’s economic inclusion, and support for local enterprises.

“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 stated.

Business Post reports NCGC was established to guarantee an individual for term loans for up to 5 years and working capital of up to 24 months, ranging from N50 million to N10 billion.

It was to provide portfolio guarantees with single obligor limits of N50 million and portfolio caps of N5 billion, and give partial credit guarantees covering up to 60 per cent of loan value.