Tinubu’s Credit Guarantee Scheme Provides N64.13bn in Loans, Supporting Nearly 915,000 Jobs

The National Credit Guarantee Company (NCGC) has helped unlock N64.13 billion in loans for Nigerian businesses and individuals in its first 14 months. This initiative has supported around 914,791 jobs, according to the company’s Managing Director, Dr. Bonaventure Okhaimo.

Established by President Bola Ahmed Tinubu, the NCGC aims to help people and businesses access loans without the usual barriers, like needing collateral. So far, over 22,000 Nigerians have received loans for the first time, with women making up 42.7% of the beneficiaries.

Okhaimo explained that the NCGC has provided N30.19 billion in guarantees to encourage banks to lend to those who might otherwise be considered too risky. The goal is to enable viable businesses to secure loans even if they lack traditional collateral.

To further support women entrepreneurs, NCGC plans to provide over N100 billion in financing for more than 20,000 women-owned businesses in the next five years. This includes a new initiative called GuaranteeHer, which raises the guarantee coverage for women-owned businesses to 70%.

Despite the positive impact, Okhaimo noted that youth participation in the program is low, with only about 7,700 young Nigerians benefiting. The company aims to increase this number to 40% to better reflect Nigeria’s young population.

While the NCGC is improving access to loans, high interest rates remain a challenge. Okhaimo mentioned that banks set these rates based on various economic factors, and while the NCGC’s guarantees help reduce risks for lenders, they do not directly control interest rates.

Overall, the NCGC is committed to ensuring that lack of collateral does not prevent viable businesses from obtaining necessary financing, contributing to economic growth and job creation in Nigeria.