Lagos: The National Credit Guarantee Company (NCGC) has urged banks and other financial services stakeholders to establish a solid partnership focused on developing a more inclusive, resilient, and dynamic credit market in Nigeria. This appeal was made by the Managing Director of NCGC, Mr. Bonaventure Okhaimo, during the inaugural Stakeholders’ Engagement Forum held on Monday.
According to News Agency of Nigeria, the event, themed ‘Unlocking Access to Finance through Credit Guarantees and Strategic Partnership’, highlighted the need for collaboration to transform Nigeria’s credit landscape, enabling Micro, Small, and Medium Enterprises (MSMEs) to prosper. Okhaimo identified key stakeholders, including commercial banks, microfinance institutions, fintech companies, and Development Financial Institutions (DFIs).
He emphasized that the establishment of NCGC by the Federal Government represents a significant initiative under President Bola Tinubu’s administration, aimed at reducing lending risks, promoting financial inclusion, and improving access to credit. ‘This initiative reflects a shared commitment to addressing critical challenges in Nigeria’s credit ecosystem and unlocking the immense potential within our economy,’ Okhaimo stated.
Okhaimo acknowledged the support from the founding institutions of NCGC, such as the Ministry of Finance Incorporated (MOFI), Bank of Industry (BoI), Credicorp Ltd., and the Nigeria Sovereign Investment Authority (NSIA). He also expressed appreciation to the Central Bank of Nigeria and the World Bank for their technical and institutional guidance.
The macroeconomic outlook for Nigeria shows promise, with a Gross Domestic Product (GDP) growth of 3.13 percent in the first quarter of 2025 after rebasing, driven by growth in the services and non-oil sectors. However, Okhaimo noted the severe credit constraints faced by MSMEs and manufacturers due to high borrowing costs, inflation, volatile exchange rates, and high energy costs. ‘An estimated 80 percent of MSMEs still lack access to formal credit due to collateral constraints and lenders’ risk aversion,’ he said, citing data from the National Bureau of Statistics (NBS).
While formal financial inclusion in Nigeria increased from 54 percent in 2020 to 64 percent in 2023, about 26 percent of the adult population remains financially excluded. Okhaimo commended the interventions of Development Finance Institutions (DFIs) like BoI, DBN, NEXIM, and BOA, along with fintechs and government initiatives such as Credicorp, which have enabled over 90,000 Nigerians to access structured consumer credit since April 2024.
He also highlighted a significant decline in manufacturing exports, with figures from the Manufacturers Association of Nigeria (MAN) showing a drop from N1.04 trillion in the third quarter of 2024 to N294 billion in the first quarter of 2025, largely due to prohibitive interest rates and difficult access to credit. ‘More than 40 percent of manufacturers are unable to access the funds needed to operate at full capacity,’ he added, noting that 767 manufacturers shut down in 2023, resulting in over 18,000 job losses.
On consumer credit, Okhaimo revealed that as of January, total outstanding credit stood at N4.12 trillion, just 15.5 percent of total bank credit, and less than three percent of GDP, highlighting a massive unmet demand in the sector. The NCGC, established with an initial capital of N100 billion, aims to bridge the credit access gap by providing partial credit guarantees rather than direct lending. ‘We are here to play the role of a guarantor, covering a portion of potential loan defaults. This reduces lenders’ risks and incentivizes them to extend more credit,’ he explained.
The NCGC plans to work closely with Participating Financial Institutions (PFIs), utilizing technology and data to de-risk borrowers and promoting policies that make credit more accessible and inclusive. ‘Together, we can ensure that viable borrowers, from farmers to manufacturers, are met with opportunity, not exclusion,’ he said, affirming NCGC’s readiness for business.
Dr. Biodun Adedipe, founder and chief consultant of B. Adedipe Associates Ltd., commended the NCGC as a ‘long-awaited institutional intervention in the Nigerian credit market’, noting its potential to drive inclusive growth and deepen industrial manufacturing. He acknowledged the risks of moral hazard and political interference but praised the company’s strong foundation and leadership.
Prof. Chris Onalo, Registrar/Chief Executive Officer of the National Institute of Credit Administration (NICA), stressed the need for transparency and credibility in NCGC’s processes to build confidence and effectively deliver on its mandate. He also emphasized the necessity for better integration of credit guarantee schemes within Nigeria’s broader financial inclusion agenda.
The News Agency of Nigeria (NAN) reports that the collaborative efforts envisioned by the NCGC aim to ensure that viable partners, from farmers and traders to entrepreneurs and manufacturers, are met with opportunity rather than exclusion in Nigeria’s credit landscape.
