Tinubu: Credit guarantee scheme unlocks ₦46.95bn loans in first year

President Bola Tinubu has said the National Credit Guarantee Company (NCGC) facilitated ₦46.95 billion in loans during its first year of operation as part of efforts by the Federal Government to improve access to credit for households and small businesses.

Tinubu disclosed this on Monday in a post on his official X account, saying the NCGC had issued ₦21.59 billion in loan guarantees to participating lenders.

According to the President, the guarantees supported financing for 67,512 borrowers across 25 states and the Federal Capital Territory, FCT.

The figures indicate that the scheme helped generate about ₦2.17 in credit for every ₦1 provided through guarantees, reflecting the government’s strategy of using risk-sharing mechanisms to encourage financial institutions to lend to more borrowers.

The development also highlights the continued challenge of ensuring wider access to formal financial services, particularly for groups that have historically faced difficulties obtaining loans from conventional financial institutions.

The NCGC commenced operations in July 2025 and has adopted different guarantee models, including individual facility guarantees and portfolio guarantees.

While individual guarantees support specific credit facilities, portfolio guarantees allow lenders to provide financing to a larger number of smaller borrowers under a broader arrangement.

The first-year performance of the company is being seen as an early indication of how government-backed credit guarantees can be used to encourage private-sector lending without the government directly providing all the funds.

Tinubu described the figures as evidence that the Federal Government’s economic reforms were beginning to create more opportunities for households and businesses.

He said the administration would continue to expand access to credit and ensure that more Nigerians and businesses benefit from the opportunities created by its reforms.

“We will keep widening that road until the opportunities our reforms create reach homes and businesses in every part of Nigeria,” the President said.

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