President Bola Tinubu says the National Credit Guarantee Company (NCGC) has issued N21.59 billion in loan guarantees, enabling financial institutions to extend N46.95 billion credit to Nigerians.
Tinubu disclosed this Monday in a post marking one year of NCGC operations.
He said the scheme was established to address a major barrier facing small businesses – difficulty accessing credit due to inadequate collateral or limited credit history.
According to him, NCGC now partners 19 financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.
He said the company’s guarantees unlocked about N2.17 in credit for every N1 guaranteed.
“So far, 67,512 borrowers across 25 states and the FCT have received credit backed by NCGC,” Tinubu said.
He added that 11,374 beneficiaries are women, while 33.5 per cent are first-time formal borrowers.
The President said over 22,000 Nigerians entered formal credit system for the first time through the scheme, giving them opportunity to build credit records through successful repayments.
He said businesses supported by NCGC-backed credit account for an estimated 661,291 direct and indirect jobs.
According to him, access to credit will enable traders to restock, manufacturers to expand production and businesses to take larger orders, creating more employment.
Tinubu said NCGC is part of efforts to move Nigeria towards a credit-based economy, alongside CREDICORP, NELFUND, Bank of Industry and Development Bank of Nigeria.
“Credit gives Nigerians the means to build on the opportunities created by reforms,” he said.
“We will keep widening that road until the opportunities our reforms create reach homes and businesses in every part of Nigeria.”
