As part of a strategic push to bridge Nigeria’s longstanding MSME financing gap, the Federal Government has formally inaugurated the board of the National Credit Guarantee Company Limited (NCGC). The initiative, launched under President Bola Tinubu’s Renewed Hope Agenda, is designed to boost access to credit for Nigeria’s over 40 million micro, small, and medium enterprises (MSMEs) through a structured credit guarantee framework.
A Financial Innovation for Inclusive Growth
The NCGC was established to de-risk MSME lending by providing credit guarantees to financial institutions—helping reduce their hesitation to lend to small businesses that often lack traditional collateral. With a starting capital of ₦100 billion, the company is envisioned as a catalytic financial tool to drive inclusive economic growth, spur job creation, and strengthen the country’s industrial base.
Rather than disbursing loans directly, NCGC will offer partial credit guarantees that make it safer for banks and other lenders to support underserved enterprises. This model, which has seen success in other emerging economies, is a game-changer for Nigeria’s entrepreneurial landscape.
Leadership and Governance
The board of NCGC was inaugurated on July 3, 2025, by Vice President Kashim Shettima at the Presidential Villa in Abuja. Yakubu Dogara, former Speaker of the House of Representatives, chairs the board. He is joined by Bonaventure Okhaimo (Managing Director/CEO), Tinoula Aigwedo (Executive Director, Strategy & Operations), and Ezekiel Oseni (Executive Director, Risk Management).
Additional board members include representatives from key institutions such as the Bank of Industry (BOI), Nigeria Sovereign Investment Authority (NSIA), CrediCorp, and the Ministry of Finance Incorporated (MOFI). The World Bank is also providing technical assistance to help ensure adherence to global standards.
The Mission: Unlocking Finance, Enabling Growth
NCGC’s role is to act as a risk-sharing intermediary—providing guarantees that encourage banks and lenders to finance MSMEs, women-owned businesses, youth-led ventures, and high-potential startups across sectors such as agriculture, technology, manufacturing, and trade.
This is especially significant in Nigeria, where MSMEs contribute heavily to employment and GDP but face major challenges accessing finance. NCGC aims to remove that bottleneck and unleash a wave of economic opportunity.
Why NCGC Matters
Nigeria’s MSME sector, despite being the backbone of the economy, remains largely underfunded. Fewer than 5% of MSMEs have access to formal credit, mainly due to high risk perception and lack of collateral. The NCGC is designed to change this equation—helping lenders say “yes” more often to small business owners with viable ideas and strong business potential.
Vice President Shettima emphasized that the initiative is not about charity but about “building credibility and creating confidence” in the financial ecosystem to support real sector growth.
Looking Ahead
The NCGC is expected to:
- Strengthen MSME access to capital through guarantee-backed loans
- Support economic sectors that drive job creation and exports
- Empower underrepresented groups, particularly women and young entrepreneurs
- Help formalize more businesses and deepen financial inclusion
If implemented effectively, this institution could become a cornerstone of Nigeria’s economic transformation—unlocking trillions of naira in productive financing over the next decade.
