The National Credit Guarantee Company has entered into a memorandum of understanding with participating financial institutions to boost access to credit for women- and youth-led businesses.
The agreement, signed on Thursday in Lagos, brought together financial sector leaders, development partners, and other stakeholders.
Under the partnership, NCGC will offer credit guarantee solutions to reduce lending risks for micro, small, and medium enterprises, local manufacturers, and underserved consumers.
The initiative aims to ease funding barriers by enabling financial institutions to extend credit with greater confidence, as NCGC absorbs part of the associated risk.
NCGC’s managing director and chief executive officer, Bonaventure Okhaimo, stressed that the agreement represents more than just paperwork.
“This initiative is not just about signing documents, it is about forging a bold partnership that will reshape how credit is accessed in Nigeria,” he said.
Okhaimo stated that MSMEs, responsible for almost half of Nigeria’s GDP, continue to struggle with obtaining affordable financing due to high risk perceptions.
He explained that NCGC was created to address this financing gap, providing solutions including individual loan guarantees up to N10 billion, portfolio guarantees capped at N5 billion, and partial credit guarantees covering up to 60% of a loan’s value.
The executive director of strategy and operations,
Tinuola Aigwedo, said the programme is designed to empower women and youth entrepreneurs.
“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 said.
Meanwhile, NCGC stated that it is allocating N5 billion in credit guarantees to each participating financial institution in the pilot phase, focusing on agriculture, fashion, green energy, exports, and education.
The company added that the move will promote job creation, strengthen value chains, and improve Nigeria’s credit-to-GDP ratio.
