NCGC Announces Loan Support for Nigerians, 74,503 Women Among Beneficiaries
- The National Credit Guarantee Company backed N64.13bn in loans for 174,495 borrowers across Nigeria in its first year of operations
- Women accounted for 74,503 beneficiaries, representing 42.7% of borrowers, while 22,616 Nigerians accessed formal finance for the first time
- The company said its credit guarantee scheme supported 914,791 direct and indirect jobs through participating financial institutions
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The National Credit Guarantee Company Limited (NCGC) has announced that it backed N64.13bn in loans for 174,495 Nigerians across the country during its first year of operations.
The company's Managing Director and Chief Executive Officer, Dr Bonaventure Okhaimo, disclosed the figures on Tuesday in Abuja while briefing State House correspondents on its performance.
Source: Getty Images
According to Okhaimo, the figures from the company's programme performance report as of October 21 showed that its guarantees had helped 19 participating financial institutions extend credit to eligible borrowers.
The institutions comprise commercial banks, microfinance banks and development finance institutions.
Okhaimo explained that the NCGC does not lend directly to borrowers but guarantees part of eligible loans, sharing the risk with lenders when customers fail to repay.
He said the arrangement helps financial institutions extend credit to borrowers who might otherwise struggle to meet lending requirements, often with lower collateral demands and better terms.
The report showed that every N1 in guarantees provided by the company unlocked approximately N2.12 in loans.
Women account for 74,503 beneficiaries
Women accounted for 74,503 of the 174,495 beneficiaries, representing 42.7% of the total number of borrowers supported by the scheme.
The company also reported that 22,616 borrowers, representing 12.96%, accessed formal finance for the first time, while 7,731 beneficiaries were recorded under its youth empowerment category.
Trade and commerce, alongside agribusiness and agro-processing, accounted for slightly more than 80% of the beneficiaries.
Okhaimo said participating financial institutions reported 175,481 direct jobs associated with the borrowers supported by the company.
The NCGC's report estimated a further 739,310 indirect jobs, bringing the total number of jobs impacted to 914,791.
NCGC launches GuaranteeHer initiative
The company also launched GuaranteeHer, a gender-responsive credit guarantee framework designed to improve women's access to affordable financing, Vangaurd reports.
Source: TikTok
Okhaimo said the initiative was launched on July 29, with the Minister of Women Affairs and Social Development, Imaan Sulaiman-Ibrahim, as special guest. It was formally unveiled at the company's first-anniversary stakeholders' forum on September 3.
Punch reports that rather than introduce a new loan product, GuaranteeHer strengthens existing women-focused lending programmes operated by financial institutions.
These include Access Bank's W Initiative, FirstBank's FirstGem, FCMB's SheVentures, Sterling's Smart Women and Fidelity's FundHer.
According to Okhaimo, the framework is intended to help participating lenders offer women lower interest rates, reduced collateral requirements and longer repayment periods.
FG opens portal; Nigerians can borrow up to N300,000
Earlier, Legit.ng reported that the Nigerian government is set to empower market women, small-scale traders, and artisans with access to zero-interest loans of up to N100,000 through its upcoming programmes, MarketMoni and TraderMoni.
MarketMoni will provide market women with interest-free loans to grow working capital, restock inventory, and expand their businesses.
Beneficiaries will enjoy zero collateral, a 3-month moratorium before repayment, and nationwide coverage across all six geopolitical zones.
Source: Legit.ng
