Limited access to finance remains one of the biggest challenges confronting women-owned businesses in Nigeria, prompting the National Credit Guarantee Company (NCGC) to introduce a new credit guarantee scheme aimed at reducing lending risks and expanding access to formal financing.

The initiative, known as GuaranteeHer, is expected to facilitate more than ₦100 billion in financing for women-owned and women-led Micro, Small and Medium Enterprises (MSMEs) over the next five years.

According to the company, the programme is projected to support more than 20,000 businesses while helping to create or sustain over 150,000 direct and indirect jobs if successfully implemented.

Speaking at a stakeholders’ engagement in Abuja, the Minister of Women Affairs, Imaan Sulaiman-Ibrahim, said inadequate access to credit continues to limit the growth potential of many women entrepreneurs despite their contributions to the economy.

She said addressing financing constraints would enable more women to expand their businesses, create jobs and contribute more meaningfully to national development. The minister urged financial institutions and policymakers to strengthen mechanisms that improve women’s access to formal credit.

Officials of the NCGC argued that women remain disproportionately excluded from financial services despite studies indicating strong repayment records among female borrowers.

Executive Director, Strategy and Operations, Mrs. Tinuola Aigwedo, cited data showing that one in three women in Nigeria lacks access to appropriate financial services, while women generally face greater difficulty than men in obtaining business loans.

She said the guarantee scheme seeks to reduce lending risks for participating financial institutions by providing partial credit guarantees and encouraging greater financing for women-owned enterprises.

Managing Director and Chief Executive Officer of NCGC, Dr. Bonaventure Okhaimo, said structural challenges, including collateral requirements, limited formal business documentation and lenders’ risk perceptions, continue to restrict access to finance for many women entrepreneurs.

He said the scheme is designed to address some of those constraints by sharing credit risks with participating financial institutions and encouraging more lending to viable women-led businesses.

Under the framework, participating lenders may receive guarantees covering up to 70 per cent of eligible loan portfolios, alongside technical support and other risk-sharing arrangements intended to improve credit access.

The programme will begin with a 12-month pilot involving selected financial institutions before a broader rollout.

Stakeholders at the event said improving access to finance for women-owned businesses could strengthen the country’s MSME sector, boost employment and support broader economic inclusion if effectively implemented.