Tinubu: How FG Guaranteed N46.95bn Loans For 67,512 Nigerians In One Year
By Victor Idajili
President Bola Tinubu says the National Credit Guarantee Company, NCGC, has unlocked N46.95 billion in loans for 67,512 Nigerians and small businesses within its first year.
Tinubu disclosed this on Monday in a post on X, noting that the loans were made possible through N21.59 billion in guarantees provided by the company. This means for every N1 guarantee, banks lent out N2.17.
According to him, more than 22,000 of the beneficiaries are accessing formal credit for the first time.
"When I sought your mandate, I promised to move Nigeria towards a credit-based economy. A worker with access to credit can buy what the family needs and pay over time, and a small business can invest today against the income it expects tomorrow," the President said.
He explained that the NCGC was established in August 2024 to solve a major problem - banks refusing to lend to good businesses because they lack collateral or credit history.
"Many viable businesses still meet the same obstacle at the bank. We established NCGC to help change that. It carries part of the lending risk," Tinubu said.
The President said the scheme has so far covered 25 states and the FCT, with 11,374 women beneficiaries. About 33.5% of all borrowers are first-timers who will now build a credit history that will help them access bigger loans in future.
The NCGC is currently working with 19 financial institutions - 13 commercial banks, 3 microfinance banks and 3 development finance institutions. It guarantees up to 60% of loan principal for lenders, with higher cover for strategic sectors.
Tinubu said the impact goes beyond lending, as the businesses supported have created an estimated 661,291 direct and indirect jobs.
He listed NCGC alongside CREDICORP, NELFUND, BOI and DBN as part of his government's credit system.
"Our reforms laid the foundation. Credit gives Nigerians the means to build on it. We will keep widening that road until the opportunities our reforms create reach homes and businesses in every part of Nigeria," he added.
