Loans backed by the Nigerian Credit Guarantee Company (NCGC) have reached N46.95bn in their first year of operation, according to official data released by the presidency.
The intervention has supported 67,512 borrowers spread across 25 states and the Federal Capital Territory (FCT). Government figures show that approximately one-third of these beneficiaries accessed formal credit for the first time through the credit guarantee scheme.
The milestone reflects efforts by the administration to deepen financial inclusion and ease credit access for micro, small, and medium-sized enterprises (MSMEs), which traditionally face severe hurdles securing loans from commercial lenders due to a lack of acceptable collateral.
Expanding Financial Access for Small Businesses
The credit guarantee scheme is designed to share risk with financial institutions, encouraging commercial banks and microfinance institutions to extend credit to riskier segments of the economy. By backing a portion of the loan portfolio, the NCGC absorbs part of the default risk, thereby lowering barriers for entrepreneurs, traders, and small business owners.
Financial analysts note that lack of collateral remains a primary bottleneck preventing Nigerian enterprises from scaling operations. Programmes that bridge this gap are vital for stimulating domestic trade, manufacturing, and job creation, particularly in a challenging macroeconomic environment marked by high interest rates and inflation.
Despite the broader reach covering 25 states and the FCT, the company faces the challenge of extending coverage to the remaining states and deepening penetration in underserved rural clusters. The federal government has yet to announce specific targets for the upcoming operational year, but stakeholders anticipate expanded funding and broader institutional partnerships to sustain the momentum.
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