The National Credit Guarantee Company has guaranteed loans worth N46.95 billion for 67,512 borrowers across 25 states and the Federal Capital Territory, as part of efforts to widen access to formal credit.
The figure, disclosed by President Bola Tinubu on Monday, shows that the NCGC provided N21.59 billion in guarantees to participating financial institutions, enabling them to extend about N46.95 billion in credit as of August 2026.
This means every N1 in guarantee cover supported approximately N2.17 in credit extended by participating lenders.
The credit guarantee programme began operations in July 2025 to reduce the risks faced by lenders when providing loans to borrowers who may lack sufficient collateral or established credit histories.
Under the arrangement, the NCGC shares part of the lending risk with participating financial institutions, encouraging them to extend credit to businesses and individuals who may otherwise struggle to secure formal financing.
The company currently works with 19 financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.
About 33.5 per cent of the beneficiaries, representing more than 22,600 Nigerians, were first-time formal borrowers.
Women-owned businesses accounted for 11,374 beneficiaries, while businesses supported through the guarantee interventions have contributed an estimated 661,291 direct and indirect jobs.
Tinubu said the initiative was part of efforts to deepen Nigeria’s transition towards a credit-based economy by making financing more accessible to workers, entrepreneurs and businesses.
He said the guarantee mechanism was designed to address a major barrier to business financing, particularly for viable businesses with limited collateral or insufficient credit histories.
According to the President, the NCGC shares lending risks with participating financial institutions, giving lenders greater confidence to extend credit to borrowers who might otherwise be excluded from formal financing.
He added that the scheme complements other government-backed financing programmes, including consumer credit through the CreditCorp, education financing through the Nigerian Education Loan Fund and business lending by institutions such as the Bank of Industry and the Development Bank of Nigeria.
The NCGC was established with an initial capital base of N100 billion as part of the Federal Government’s efforts to strengthen Nigeria’s credit infrastructure and improve access to finance.
With 67,512 borrowers reached within its first year of operation, the company is expected to expand its guarantee programmes and bring more businesses and individuals into the formal credit market.
For businesses, the guarantee arrangement is intended to improve access to working capital and investment financing while allowing participating lenders to retain responsibility for credit assessment and loan recovery.
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