The National Credit Guarantee Company (NCGC) has urged commercial banks, fintechs, microfinance institutions, and development finance bodies to collaborate in building a more inclusive and resilient credit system for Nigeria’s economy.
Speaking during NCGC’s inaugural Stakeholders’ Engagement Forum held Monday in Lagos, the company’s Managing Director said a united financial front is key to reshaping Nigeria’s credit landscape and enabling Micro, Small, and Medium Enterprises (MSMEs) to thrive. The forum was themed *”Unlocking Access to Finance Through Credit Guarantees and Strategic Partnership.”*
He emphasized that the Federal Government’s establishment of NCGC marked a bold step under President Bola Tinubu’s administration to de-risk lending, enhance financial inclusion, and widen access to credit especially for underserved segments like MSMEs and manufacturers.
According to him, over 80 per cent of MSMEs in Nigeria still lack access to formal credit due to collateral challenges and lenders’ risk aversion, despite a modest rise in financial inclusion from 54 per cent in 2020 to 64 per cent in 2023.
NCGC, capitalized with an initial N100 billion, aims to fill this credit access gap not by lending directly but by providing partial credit guarantees. This model reduces lenders’ exposure to risk and encourages more credit extension, particularly for productive sectors.
He acknowledged the support of founding institutions such as the Ministry of Finance Incorporated (MOFI), the Bank of Industry (BoI), Credicorp Ltd., and the Nigeria Sovereign Investment Authority (NSIA), alongside institutional support from the Central Bank of Nigeria and the World Bank.
Despite Nigeria’s 3.13 per cent GDP growth in the first quarter of 2025 driven largely by services and non-oil sectors, he said MSMEs continue to struggle under the weight of inflation, high energy costs, exchange rate volatility, and borrowing costs. Citing NBS data, he warned that about 40 per cent of manufacturers cannot access needed capital, while over 767 manufacturers shut down in 2023, leading to more than 18,000 job losses.
The company noted that consumer credit remains significantly underutilized, with just N4.12 trillion in total outstanding loans as of January 2025—representing only 15.5 per cent of total bank credit and less than 3 per cent of GDP.
He affirmed that NCGC would work closely with Participating Financial Institutions (PFIs), leverage data and technology to de-risk borrowers, and promote policies that support sustainable access to credit. “We are here to play the role of a guarantor… Together, we can ensure that viable borrowers, from farmers to manufacturers, are met with opportunity, not exclusion,” he said.
He also praised other government interventions, including fintech-backed consumer credit schemes like Credicorp, which have provided structured access to over 90,000 Nigerians since April 2024.
Highlighting the urgency for action, he called on all stakeholders to move “from dialogue to design, from intention to impact” to transform Nigeria’s credit market.
Delivering a keynote address, economist and chief consultant of B. Adedipe Associates Ltd. noted that Nigeria’s credit-to-GDP ratio between 2015 and 2020 ranged from 10 to 15 per cent—far below global and African peers. He compared Nigeria’s position to countries like South Africa (109.05%), Morocco (66.01%), and Kenya (32.15%), citing a long-standing underperformance in private sector credit delivery.
He described the NCGC as a long-awaited intervention that could unlock inclusive growth and revitalize manufacturing, warning however that the success of such institutions depends on shielding operations from political interference and maintaining strong governance.
Also speaking, the Registrar and CEO of the National Institute of Credit Administration (NICA) emphasized the importance of transparency, credibility, and alignment with Nigeria’s broader financial inclusion goals if NCGC is to deliver lasting impact.
