A new chapter in Nigeria’s financial inclusion journey is set to begin on July 1, 2025, as the National Credit Guarantee Company Limited (NCGC) officially kicks off operations. With an initial capital base of ₦100 billion announced by President Bola Ahmed Tinubu, the specialized financial institution aims to unlock access to credit for Micro, Small and Medium Enterprises (MSMEs), manufacturers, and underserved sectors of the economy.
Designed to de-risk lending and enhance credit flow across Nigeria’s real economy, the NCGC offers partial credit guarantees to banks and other financial institutions, enabling them to confidently extend credit to eligible borrowers. The company’s model does not involve direct lending. Instead, it partners with commercial banks, microfinance institutions, fintechs, and other licensed financial institutions to share the burden of credit risk.
“Too many Nigerian businesses are creditworthy but invisible to traditional lenders,” said the company in a statement. “NCGC provides the confidence and cushion needed to bring these businesses into the formal credit ecosystem.”
Through a suite of products including partial credit guarantees (covering up to 60% of a loan’s outstanding principal), co-guarantees, and technical assistance, the NCGC aims to reshape Nigeria’s credit landscape. Its beneficiaries span a wide range—from youth and women-led enterprises to export-oriented and non-interest-based businesses.
The initiative targets several key sectors, including agriculture, renewable energy, manufacturing, digital technology, solid minerals, textiles, and Islamic enterprises. The company’s operational ethos centers on globally accepted principles: risk-sharing over risk-transfer, strategic issuance to maintain borrower discipline, and full regulatory alignment with the Central Bank of Nigeria (CBN).
In addition to individual and portfolio guarantees, the NCGC will provide performance bond guarantees for businesses undertaking contract-based obligations, thus supporting enterprise growth from procurement to delivery.
As part of the federal government’s Renewed Hope Agenda, the NCGC is positioned to be a powerful catalyst for economic transformation—aiming to create jobs, strengthen the MSME ecosystem, alleviate poverty, and boost national productivity.
With its headquarters at BOI House in Abuja, the NCGC invites lenders, entrepreneurs, and development partners to collaborate in what it calls “guaranteeing growth” for Nigeria’s real sector.