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), marking a significant milestone in Nigeria’s journey towards inclusive economic growth and unlocking access to finance.
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.
The MoU signing ceremony, which was held at the Lagos Continental Hotel, Victoria Island, Lagos, last Thursday, was attended by top executives from the financial services sector, development partners, and key stakeholders.
Speaking at the event, the Managing Director/CEO of NCGC, Mr. Bonaventure Okhaimo, emphasised that the initiative is not just about signing documents, but about forging a bold partnership that will reshape how credit is accessed in Nigeria. He noted that MSMEs, which contribute nearly half of Nigeria’s GDP, have long faced barriers to affordable financing due to perceived risks.
“NCGC 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 ₦50 million to ₦10 billion Portfolio Guarantees with single obligor limits of ₦50 million and portfolio caps of ₦5 billion Partial Credit Guarantees covering up to 60 per cent of loan value 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,” Okhaimo stated.
The Guardian learnt that as part of the pilot phase, NCGC is committing ₦5 billion in credit guarantees to each onboarded PFI, specifically targeting women-owned and youth-led MSMEs.
The Executive Director of Strategy and Operations, Ms. Tinuola Aigwedo, also emphasised the transformative potential of the initiative. She said: “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, which prioritises youth empowerment, women’s economic inclusion, and support for local enterprises.
In his remarks, the Executive Director of Risk & Credit Control, Professor Oseni, extended a heartfelt appreciation to all PFIs present.
“We all need one another for the economy to grow. This partnership is the beginning of an exciting journey; one that will bring finance to underserved communities and unlock the full potential of Nigeria’s entrepreneurial spirit,” Oseni said.
