NCGC, Financial Institutions Sign MoU to Boost Credit for Youth and Women Businesses
The National Credit Guarantee Company (NCGC) has signed a strategic Memorandum of Understanding (MoU) with leading Participating Financial Institutions (PFIs) to expand access to credit for Nigerian youth, women-led enterprises, and small businesses.
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The agreement, sealed at a ceremony held at Victoria Hall, Lagos Continental Hotel, Victoria Island, was attended by financial sector executives, development partners, and policymakers.
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Stakeholders hailed the move as a major step toward inclusive economic growth and improving access to finance for underserved groups.
De-risking loans for MSMEs
Through the partnership, NCGC will provide credit guarantee solutions that reduce lending risks, enabling banks and financial institutions to extend more credit to small businesses and households.
By absorbing part of the risk, NCGC aims to encourage PFIs to lend to groups often excluded from affordable financing.
Mr. Bonaventure Okhaimo, Managing Director/CEO of NCGC, said the initiative would reshape credit access in Nigeria. He noted that Micro, Small, and Medium Enterprises (MSMEs), which contribute nearly half of Nigeria’s GDP, continue to face difficulties accessing loans due to high perceived risks.
“MSMEs have demonstrated resilience, but the absence of affordable credit has limited their growth.
This partnership is about breaking barriers and ensuring that government-backed guarantees unlock real opportunities,” Okhaimo said.
Credit guarantee products
NCGC announced several innovative financial instruments designed to support lending, including:
- Individual Guarantees for term loans up to five years and working capital loans up to 24 months, ranging between ₦50 million and ₦10 billion.
- Portfolio Guarantees with single obligor limits of ₦50 million and portfolio caps of ₦5 billion.
- Partial Credit Guarantees covering up to 60% of loan value.
- Co-Guarantees and Technical Assistance to strengthen financial institutions.
- The pilot phase will focus on high-impact sectors such as agriculture, fashion, green energy, export businesses, and education.
Driving inclusive growth
Speaking to journalists, Ms. Tinuola Aigwedo, Executive Director of Strategy and Operations at NCGC, stressed the transformative potential of the MoU.
“This partnership is not just about financial inclusion—it is about economic empowerment.
By unlocking credit for youth and women entrepreneurs, we are building the foundation for a stronger, fairer economy,” she said.
She added that the initiative aligns with President Bola Tinubu’s Renewed Hope Agenda, which prioritises youth empowerment, women’s economic participation, and support for local businesses.
₦5 billion commitment to PFIs
As part of the pilot phase, NCGC is committing ₦5 billion in credit guarantees to each participating financial institution, specifically targeting youth-owned and women-led MSMEs. The investment is expected to stimulate job creation, strengthen value chains, and improve Nigeria’s credit-to-GDP ratio.
Professor Oseni, Executive Director of Risk & Credit Control, said the partnership represented “a collective pledge to finance underserved communities and unlock Nigeria’s entrepreneurial spirit.”
Source: Getty Images
Building a resilient financial ecosystem
By drawing inspiration from global success stories in India, South Korea, and the UK, NCGC aims to position Nigeria for sustainable economic growth.
The deal signals a commitment to ensuring that inclusive financing becomes a reality for millions of entrepreneurs.
“This is more than a legal agreement,” Okhaimo added.
“It is a bold step toward creating a resilient, inclusive financial ecosystem where no entrepreneur is left behind.”
How a Nigerian firm is redefining loan access
Legit.ng earlier reported that in Nigeria, access to affordable credit has long been a stumbling block for individuals and small businesses striving to grow.
But a new player, Andray Finance Limited, is changing the narrative.
Founded in 2022 and headquartered at Cardinal Place, Victoria Island, Oniru, Lagos, the digital-first institution is rapidly positioning itself as a game-changer in loan financing—particularly for those historically excluded from traditional banks.
Source: Legit.ng
