In a move aimed at reshaping access to finance for underserved entrepreneurs, the National Credit Guarantee Company (NCGC) has signed a memorandum of understanding (MoU) with multiple participating financial institutions (PFIs) to boost lending to youth- and women-led businesses.
The MoU was formalised on Thursday at a high-level event in Lagos, attended by senior banking executives, development partners, and stakeholders from across Nigeria’s financial ecosystem.
Under the new agreement, the NCGC will offer credit guarantees designed to de-risk loans issued to micro, small, and medium enterprises (MSMEs), particularly in high-impact sectors such as agriculture, fashion, green energy, education, and exports.
A Bold Shift in Lending Culture
Speaking at the event, Bonaventure Okhaimo, Managing Director and CEO of NCGC, described the partnership as a strategic shift in Nigeria’s lending culture.
“This initiative is not just about signing documents, it is about forging a bold partnership that will reshape how credit is accessed in Nigeria,” Okhaimo said.
He noted that MSMEs, which contribute nearly 50% of Nigeria’s GDP, have long struggled to access affordable loans due to risk-averse lending practices in the banking sector.
To address this, NCGC is introducing a range of credit guarantee tools, including:
- Individual guarantees for loans up to ₦10 billion
- Portfolio guarantees with caps of ₦5 billion
- Partial credit guarantees covering up to 60% of loan value
Empowering Women and Youth
Also speaking at the ceremony, Tinuola Aigwedo, NCGC’s Executive Director of Strategy and Operations, said the deal goes beyond financial inclusion, it’s about driving 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.
Aigwedo emphasized that the onboarding of financial institutions reflects the Renewed Hope Agenda of President Bola Tinubu, which prioritises inclusive growth and economic participation for women and young people.
Pilot Phase: N5 Billion Guarantee Per Institution
As part of its pilot rollout, NCGC will commit ₦5 billion in credit guarantees to each participating financial institution, with the goal of encouraging lending to entrepreneurs operating in key growth sectors.
According to the company, this investment is expected to:
- Drive job creation
- Strengthen local value chains
- Improve Nigeria’s credit-to-GDP ratio, currently one of the lowest among peer economies
A Shared Responsibility
In his closing remarks, Oseni, NCGC’s Executive Director of Risk and Credit Control, praised the participating banks for their commitment to inclusive finance.
“This partnership marks the beginning of an exciting journey, one that will bring financing to underserved communities and unlock the full potential of Nigeria’s entrepreneurial spirit,” he said.
“We all need one another for the economy to grow.”
With the MoU now signed, stakeholders say the success of the program will depend on effective implementation, sustained collaboration, and a genuine commitment to transforming Nigeria’s lending landscape for good.
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