NCGC Partners with Banks to Boost Credit Access for Youth and Women-Led Businesses

The National Credit Guarantee Company (NCGC) has signed a landmark MoU with financial institutions to expand credit access for youth, women-led businesses, and MSMEs in Nigeria

NCGC Partners with Banks to Boost Credit Access for Youth and Women-Led Businesses

Lagos, Nigeria – September 4, 2025 – The National Credit Guarantee Company (NCGC) has signed a landmark Memorandum of Understanding (MoU) with leading Participating Financial Institutions (PFIs) to unlock credit access for youth, women-led enterprises, and Micro, Small, and Medium Enterprises (MSMEs). The event, held at the Lagos Continental Hotel, Victoria Island, brought together top financial sector executives, development partners, and key stakeholders.

Through this strategic collaboration, NCGC will provide credit guarantee solutions that reduce lending risks for PFIs, enabling them to extend financing to underserved businesses and households. By absorbing part of the risk, NCGC aims to ease credit constraints that have long hindered Nigeria’s MSME sector, which contributes nearly half of the nation’s GDP.

Speaking at the signing, Mr. Bonaventure Okhaimo, Managing Director/CEO of NCGC, described the initiative as a bold step toward reshaping access to credit in Nigeria.

“This initiative is not just about signing documents—it is about forging a bold partnership that will reshape how credit is accessed in Nigeria,” Okhaimo said.

He highlighted NCGC’s innovative products, including:

• Individual Guarantees for term loans (up to 5 years) and working capital (up to 24 months), from ₦50 million to ₦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 support PFIs.

Drawing from successful models in India, South Korea, and the UK, NCGC’s pilot phase will prioritize high-impact sectors such as agriculture, green energy, fashion, export-driven businesses, and education.

Ms. Tinuola Aigwedo, Executive Director of Strategy and Operations, emphasized the transformative vision of the initiative:

“This partnership is not just about financial inclusion—it’s about economic empowerment. By unlocking access to credit for youth and women entrepreneurs, we’re laying the foundation for a more resilient and equitable economy.”

She noted that onboarding PFIs represents a major milestone for NCGC and aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritizes youth empowerment, women’s economic inclusion, and MSME growth.

In his closing remarks, Professor Oseni, Executive Director of Risk & Credit Control, praised the collaboration:

“We all need one another for the economy to grow. This partnership is the beginning of an exciting journey—one that will bring finance to underserved communities and unlock the full potential of Nigeria’s entrepreneurial spirit.”

As part of the pilot, NCGC is committing ₦5 billion in credit guarantees to each onboarded financial institution, specifically targeting women-owned and youth-led MSMEs. This investment is expected to drive job creation, strengthen value chains, and improve Nigeria’s credit-to-GDP ratio.

The MoU, beyond a legal framework, stands as a collective pledge to build a more inclusive, resilient, and growth-driven financial ecosystem for Nigeria.