The National Credit Guarantee Company (NCGC) has unveiled a landmark initiative expected to unlock over ₦170 billion in credit guarantees for women and youth-led Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.
Managing Director and CEO of NCGC, Bonaventure Okhaimo, disclosed this on Thursday during the official signing of a Memorandum of Understanding (MoU) with 18 Participating Financial Institutions (PFIs). The agreement marks the formal start of NCGC’s pilot phase credit guarantees scheme.
Okhaimo explained that under the pilot phase, about ₦5 billion in guarantee loans will be provided to the PFIs that signed the MoU, with special focus on priority sectors including renewable energy, light manufacturing, fashion, and other high-potential industries.
“That ₦5 billion for them will create about ₦100 billion credit guarantees. And that will create about ₦170 billion credit guarantees for women and youth-led MSMEs in Nigeria that are operating in the priority sectors,” Okhaimo stated.
According to him, NCGC will act as a co-guarantor and technical partner, providing individual guarantees for term loans of up to five years and working capital for up to 24 months. Facilities will range from ₦50 million to ₦10 billion, with portfolio guarantees capped at ₦5 billion and single obligor limits at ₦50 million.
He further urged women and youth entrepreneurs with viable, bankable ideas to approach PFIs, stressing that the federal government through NCGC will absorb 60 percent of the risk under the partial credit guarantee scheme.
“If you give a loan of ₦1 million to a customer, NCGC would take ₦600,000. If you don’t pay your ₦1 million, NCGC will pay ₦600,000,” Okhaimo explained.
The initiative, he noted, is aimed at addressing the significant financing gap facing MSMEs. Current access to finance for women and youth-led businesses stands at about 7 percent, but NCGC projects this could rise to between 10 and 16 percent within five years through strengthened partnerships with financial institutions.
Speaking at the event, Samson Gbadamosi, Deputy Executive Secretary of the Nigeria Association of Small and Medium Enterprises (NASME), described the launch as a long-awaited breakthrough for small businesses.
“It’s like a dream come true and prayer answered. NASME has advocated for a credit guarantee scheme for the past 15 years because it will bring relief to MSMEs,” Gbadamosi said. He added that NASME has over 30 million MSMEs on its database, and the scheme would address one of their most persistent challenges: being tagged as high-risk borrowers in the financial ecosystem.
Also speaking, Tinuola Aigwedo, Executive Director of Strategy and Operations at NCGC, underscored the transformative potential of the initiative. She emphasized that the onboarding of PFIs is a major milestone in fulfilling NCGC’s mandate and aligns with the Renewed Hope Agenda of President Bola Ahmed 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,” Aigwedo said.
With MSMEs serving as the backbone of African economies, this scheme holds significant promise not only for Nigerian entrepreneurs but also as a model for inclusive financing across the continent.
