President Bola Ahmed Tinubu has announced that 67,512 borrowers across 25 states and the Federal Capital Territory (FCT) have received credit backed by the National Credit Guarantee Company (NCGC) within its first year of operations.

Tinubu disclosed the figures on Monday in a series of posts on his official X account, highlighting the government's efforts to expand access to formal financing as Nigeria approaches its 66th Independence Day anniversary.

According to the President, the NCGC has issued ₦21.59 billion in guarantees, enabling participating financial institutions to extend ₦46.95 billion in loans.

He said the figures translate to approximately ₦2.17 in credit for every ₦1 provided in guarantees.

Over 22,000 Nigerians Enter Formal Credit System

Tinubu said 11,374 women are among the beneficiaries, while 33.5 per cent of those reached are first-time formal borrowers.

Based on the figures, more than 22,000 Nigerians have entered the formal credit system for the first time through NCGC-backed financing.

The President said access to formal credit could allow beneficiaries to establish credit histories that may make it easier for them to obtain financing in the future, subject to successful repayment and lenders' requirements.

NCGC Targets Financing Barriers

The NCGC was established to help address challenges faced by businesses and borrowers who may struggle to obtain financing because of limited collateral or a lack of established credit history.

Under the guarantee model, the company shares part of the lending risk with participating financial institutions, potentially giving lenders greater confidence to extend credit to borrowers who might otherwise have difficulty accessing loans.

Tinubu said the NCGC currently operates through 19 financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.

Government Links Credit Access to Jobs and Business Growth

The President also highlighted the potential economic impact of increased access to credit, pointing to traders, manufacturers and other businesses that can use financing to expand their operations.

According to Tinubu, the NCGC estimates that businesses supported through its guarantee programmes account for 661,291 direct and indirect jobs.

That figure is an NCGC estimate of jobs associated with supported businesses rather than a direct count of new jobs created solely by the guarantee scheme.

Tinubu said improved access to credit is an important part of efforts to move Nigeria towards a more credit-based economy.

CREDICORP, NELFUND and Other Institutions

The President also pointed to other government-backed financing institutions and programmes as part of the broader credit ecosystem.

He cited the Nigerian Consumer Credit Corporation (CREDICORP) for consumer credit, the Nigerian Education Loan Fund (NELFUND) for education financing, and the Bank of Industry (BOI) and Development Bank of Nigeria (DBN) for business financing.

Tinubu said the administration would continue efforts to expand access to credit and make financing opportunities available to more Nigerians and businesses.

The latest NCGC figures provide an update on the first year of the guarantee company's operations and highlight the government's approach of using guarantees to encourage financial institutions to extend more credit.