ABUJA – President Bola Ahmed Tinubu has said his administration is making steady progress toward building a credit-driven economy, highlighting the achievements of the National Credit Guarantee Company (NCGC) as a key step in expanding access to finance for Nigerians.
In a statement reflecting on his administration’s economic reforms, the President recalled his campaign promise to establish a loan guarantee framework that would help individuals and small businesses overcome barriers to accessing credit.
According to Tinubu, the initiative is designed to enable workers to purchase essential goods through credit arrangements and allow businesses to invest and expand operations based on future earnings.
The President noted that the Federal Government has focused on building institutions that support access to finance, citing the Nigerian Consumer Credit Corporation (CREDICORP), the Nigerian Education Loan Fund (NELFUND), the Bank of Industry (BOI), and the Development Bank of Nigeria (DBN) as critical pillars of the strategy.
He explained that the National Credit Guarantee Company was created to address one of the biggest challenges facing borrowers and small businesses: the inability to access loans due to insufficient collateral or limited credit history.
Tinubu said the company helps reduce lending risks by sharing part of the risk with participating financial institutions, thereby encouraging banks and other lenders to extend credit to viable businesses and individuals who might otherwise be excluded.
According to him, the scheme currently operates through 19 financial institutions, including 13 commercial banks, three microfinance banks, and three development finance institutions.
Providing an update on the company’s first year of operations, the President disclosed that NCGC has issued ₦21.59 billion in credit guarantees, which have supported the disbursement of ₦46.95 billion in loans by participating financial institutions.
He said the figures indicate that every ₦1 guarantee provided by NCGC has unlocked approximately ₦2.17 in credit for borrowers.
Tinubu further revealed that 67,512 borrowers across 25 states and the Federal Capital Territory have benefited from loans backed by the scheme, including 11,374 women entrepreneurs and borrowers.
He added that about 33.5 per cent of beneficiaries are first-time formal borrowers, representing more than 22,000 Nigerians who have entered the formal credit system for the first time.
The President said access to formal credit would help beneficiaries build financial records that could improve their chances of securing larger loans in the future.
He emphasized the role of credit in driving economic growth, noting that access to finance enables traders to restock inventory, entrepreneurs to expand operations, and manufacturers to invest in equipment needed to increase production.
According to estimates by the National Credit Guarantee Company, businesses supported under the programme account for more than 661,000 direct and indirect jobs nationwide.
Tinubu described the development as evidence that the administration’s economic reforms were beginning to translate into tangible opportunities for citizens and businesses.
“This is how we move from reforms to opportunities,” the President said, adding that his government would continue to expand access to finance and ensure that the benefits of economic reforms reach households and businesses across the country.
Reaffirming his commitment to the policy agenda, Tinubu declared that his administration would continue to widen access to credit as part of efforts to promote economic growth, entrepreneurship, and financial inclusion.
“Promise made, promise kept. We are moving from reforms to opportunities. Nigeria First,” the President stated.
