The National Credit Guarantee Company Limited has guaranteed N64.13bn in loans to 174,495 borrowers across all 36 states and the Federal Capital Territory since it began operations last year, the company said. The figures, drawn from NCGC's programme performance report as of 21 October, show that every N1 of guarantee had unlocked about N2.12 in loans through 19 participating financial institutions, comprising commercial banks, microfinance banks and development finance institutions, according to Managing Director and Chief Executive Officer Dr Bonaventure Okhaimo.
The company provides partial guarantees designed to reduce lending risk and expand credit availability rather than lending directly. When a participating financial institution lends to an eligible borrower, NCGC guarantees part of the loan and shares losses if the borrower cannot repay. This approach allows lenders to approve borrowers they would otherwise reject, often requiring less collateral and offering better terms. Among the borrowers, 74,503, or 42.7 per cent, were women, while 22,616, representing 12.96 per cent, accessed formal finance for the first time. A further 7,731 borrowers were recorded under youth empowerment programmes.
Trade and commerce, alongside agribusiness and agro-processing, accounted for just over 80 per cent of beneficiaries. The participating financial institutions reported 175,481 direct jobs associated with the borrowers supported by NCGC, with the company estimating a further 739,310 indirect jobs, bringing total jobs impacted to 914,791.
The company launched GuaranteeHer in July, a blended-finance, gender-responsive credit guarantee framework formally unveiled at NCGC's first anniversary stakeholders' forum on 3 September. Rather than creating a new product, GuaranteeHer strengthens existing women-focused lending programmes such as Access Bank's W Initiative, FirstBank's FirstGem, FCMB's SheVentures, Sterling's Smart Women and Fidelity's FundHer by layering on a guarantee that allows lenders to offer lower interest rates, less collateral and longer repayment periods.
For savers, borrowers and business owners, this means more Nigerians now have access to formal credit with easier terms and lower collateral requirements than traditional banking would allow.