NCGC, financial institutions sign MoU to expand credit access for women, youths

The National Credit Guarantee Company (NCGC) on Thursday signed a Memorandum of Understanding (MoU) with leading Participating Financial Institutions (PFIs), formalizing a partnership aimed at expanding access to finance for underserved businesses and households.

The signing ceremony, held at the Victoria Hall of Lagos Continental Hotel, brought together top executives from the financial services sector, development partners and other stakeholders.

Under the agreement, NCGC will provide credit guarantee solutions designed to reduce the risks faced by banks and other PFIs when lending to youth and women-led enterprises, as well as Micro, Small, and Medium Enterprises (MSMEs), local manufacturers and low-income borrowers.

Speaking at the event, NCGC Managing Director/CEO, Bonaventure Okhaimo, said the initiative seeks to reshape how credit is accessed in Nigeria. He noted that MSMEs, which contribute almost half of the country’s GDP, have long struggled to access affordable financing due to high risk perceptions in the banking sector.

“We have a very huge young population. Unemployment is rising, and these are the people who are very creative and innovative. The challenge has always been their inability to access finance when they have a business idea. What most of them do is to seek financial assistance from their family members but that does not take them anywhere.”

He stated that NCGC was established to bridge this gap through innovative guarantee products, including individual guarantees for term loans (up to 5 years) and working capital (up to 24 months), ranging from N50 million to N10 billion; portfolio guarantees with single obligor limits of N50 million and portfolio caps of N5 billion; partial credit guarantees covering up to 60% of loan value; and co-guarantees and technical assistance to support PFIs.

Drawing inspiration from successful global models in India, South Korea, and the UK, NCGC is poised to catalyze inclusive growth and financial stability in Nigeria. The pilot phase will focus on high-impact sectors such as agriculture, fashion, green energy, export-oriented businesses, and education.

While emphasizing the transformative potential of the initiative, Tinuola Aigwedo, Executive Director of Strategy and Operations, reiterated that the onboarding of PFIs is a major milestone in fulfilling NCGC’s mandate, aligning directly with the Renewed Hope Agenda of President Bola Ahmed Tinubu, GCFR, which prioritizes youth empowerment, women’s economic inclusion, and support for local enterprises. “This partnership is not just about financial inclusion it’s about economic empowerment.” she said.

As part of this pilot phase, NCGC is committing ₦5 billion in credit guarantees to each onboarded Participating Financial Institution, specifically targeting women-owned and youth-led MSMEs. This bold investment is expected to stimulate job creation, strengthen value chains, and improve key financial metrics like credit-to-GDP ratio .