NCGC Moves to Expand Financial Access, Reduce Lending Risks

The National Credit Guarantee Company (NCGC) has officially unveiled a stakeholders’ engagement forum aimed at de-risking lending and expanding access to finance for Micro, Small, and Medium Enterprises (MSMEs), local manufacturers, and individual credit consumers.

The company, with an initial capitalisation of N100 billion, is poised to play a transformative role in Nigeria’s credit ecosystem by offering partial credit guarantees. This model allows the NCGC to absorb part of the risk of loan defaults, thereby encouraging banks and other financial institutions to lend more confidently to small businesses and high-risk sectors.

At the event held in Abuja, Managing Director of NCGC, Mr. Bonaventure Okhaimo, stated that the new platform would serve as a strategic bridge between lenders and underserved borrowers, particularly those who are locked out of traditional credit due to lack of collateral or high-risk ratings.

“Our mission is to unlock access to finance for those who need it most—entrepreneurs, small business owners, and underserved communities. We are here to share risk, not shift it entirely to lenders,” Okhaimo said.



Despite Nigeria’s growing entrepreneurial base, more than 80% of MSMEs still lack access to formal credit, according to recent data from the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). Many struggle to meet bank requirements due to limited credit history, inadequate financial documentation, and collateral constraints.

With the introduction of NCGC’s credit guarantee scheme, participating financial institutions will be more incentivised to issue loans to SMEs, women-led businesses, and agribusinesses that would ordinarily be overlooked due to high default risks.

Okhaimo emphasized the importance of stakeholder collaboration, urging both private and public sector actors to work hand-in-hand with the NCGC.

“Our success hinges on inclusive partnerships. The credit ecosystem must work as a collective to deliver impact. We must move from dialogue to design, from intention to impact,” he noted.

The NCGC’s model complements interventions by the Development Bank of Nigeria (DBN), Bank of Industry (BOI), and other development finance institutions. By offering risk-sharing mechanisms, it reduces the burden on traditional lenders, creating a more resilient and accessible credit market.

According to industry experts, the launch of the NCGC could boost financial inclusion, stimulate job creation, and strengthen the resilience of Nigeria’s economy—especially in rural and peri-urban areas.

Dr. Amina Yusuf, a financial analyst and lecturer at the University of Lagos, applauded the development.

“Credit guarantees are globally recognised as a tool for expanding SME lending. What’s crucial now is implementation. The NCGC must operate with transparency, efficiency, and strict oversight,” she said.



In his closing remarks, Okhaimo reiterated that the NCGC is “open for business” and will engage with commercial banks, fintech companies, cooperatives, and non-bank financial institutions to scale the scheme nationally.

“We envision a Nigeria where entrepreneurs thrive, where ideas become enterprises, and where no viable project is starved of credit due to fear of risk,” he stated.



The stakeholders’ forum marks a significant turning point in Nigeria’s economic trajectory, and the NCGC is positioning itself as a cornerstone institution in the nation’s journey toward a more inclusive, dynamic, and risk-tolerant credit market.