President Bola Tinubu says the National Credit Guarantee Company (NCGC) has unlocked N46.95 billion in loans in its first year of operations.
Mr Tinubu disclosed this on Monday in a statement on X, saying the NCGC issued N1.59 billion in guarantees to participating financial institutions.
He said the guarantees enabled the institutions to extend loans to Nigerians, with every N1 in guarantees helping unlock about N2.17 in credit.
The president said the initiative formed part of his administration’s efforts to move Nigeria towards a credit-based economy and broaden access to formal financing for households and small businesses.
“When I sought your mandate, I promised to move Nigeria towards a credit-based economy and to establish a loan guarantee scheme that would help small businesses overcome the barriers that keep them from finance,” he said.
Mr Tinubu said the scheme addressed a major obstacle facing viable businesses, whose access to loans is often constrained by inadequate collateral or limited credit histories.
Under the arrangement, NCGC shares part of the lending risk with participating financial institutions, giving them greater confidence to extend credit to businesses and borrowers they might otherwise decline.
He said NCGC currently operates through 19 financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.
According to Mr Tinubu, 67,512 borrowers across 25 states and the Federal Capital Territory (FCT) have received NCGC-backed credit, including 11,374 women.
He added that 33.5 per cent of the beneficiaries were first-time formal borrowers, giving more than 22,000 Nigerians their first entry into the formal credit system.
“Each successful repayment strengthens that record and can make the next loan easier to secure,” he said, highlighting the importance of building credit histories.
Mr Tinubu said access to credit could help traders restock, manufacturers fulfil larger orders, and businesses expand, creating opportunities for employment and growth.
The NCGC estimates that businesses supported through the scheme account for 661,291 direct and indirect jobs, he said.
The president said the initiative complemented other government-backed financing programmes, including consumer credit through CREDICORP, student loans through NELFUND, and business lending by the Bank of Industry and Development Bank of Nigeria.
“Our reforms laid the foundation. Credit gives Nigerians the means to build on it,” Mr Tinubu said.
The president said the government would continue to widen access to credit so more households and businesses could benefit from opportunities created by its reforms.