BY CHIKA OKEKE, Abuja
At least, about 661,291 Nigerians secured direct and indirect jobs through businesses supported by the National Credit Guarantee Company (NCGC) scheme.
This was even as 33.5 per cent of the beneficiaries are first-time formal borrowers, bringing more than 22,000 Nigerians into the formal credit system for the first time.
President Bola Ahmed Tinubu stated this on Monday in a post via his official X handle, @officialABAT.
He said: “Credit matters because of what people can do with it. A trader can restock before the festive season. When a manufacturer takes a bigger order and buys another machine to fill it, another Nigerian gets a job. NCGC estimates that the businesses it has supported account for 661,291 direct and indirect jobs.”
Tinubu informed that the development provides the beneficiaries with progressive credit records, saying that successful repayments could strengthen their records and improve the prospects of securing future loans.
He pointed out that access to credit gives individuals and businesses the capacity to meet immediate needs and invest in future growth, citing traders who require funds to restock and manufacturers seeking to expand production and create jobs.
The President recalled that while seeking the mandate of Nigerians, he promised to move the country towards a credit-based economy and establish a loan guarantee scheme to help small businesses overcome barriers to accessing finance.
He stated that the objective was to create a system where workers could access credit to meet family needs and repay over time, while small businesses could invest against anticipated future income.
The Federal Government has been building institutions to support the objective, including CREDICORP for consumer credit and NELFUND for student financing, while the Bank of Industry (BoI) and Development Bank of Nigeria (DBN) continue to provide financing to businesses.
He likened NCGC as an intervention designed to address one of the major obstacles confronting viable businesses seeking bank credit, particularly where entrepreneurs have limited collateral or no established credit history.
“This is how we move from reforms to opportunities. Our reforms laid the foundation. Credit gives Nigerians the means to build on it. Tens of thousands who stood outside formal credit a year ago are now inside, borrowing to grow,” he said.
The President informed that NCGC issued ₦21.59 billion in guarantees, enabling participating financial institutions to extend ₦46.95 billion in loans to Nigerians.
He said that every ₦1 provided in guarantees helped unlock about ₦2.17 in credit, describing the development as part of his administration’s efforts to move Nigeria towards a credit-based economy.
Tinubu stated that a total of 67,512 borrowers across 25 states and the Federal Capital Territory have so far accessed credit backed by the NCGC, including 11,374 women.
He pointed out that the company shares part of the lending risk with participating financial institutions, giving lenders greater confidence to extend credit to businesses and borrowers that might be reluctant to finance.
The NCGC currently works with 19 financial institutions comprising 13 commercial banks, three microfinance banks and three development finance institutions.
Tinubu said: “We will keep widening that road until the opportunities our reforms create reach homes and businesses in every part of Nigeria.”
He disclosed that the results of NCGC within its first year of operations demonstrated how the government reforms could translate into opportunities for Nigerians, particularly those previously excluded from formal credit.
Tinubu reiterated his administration’s commitment to expanding access to credit until more households and businesses across the country are able to benefit from the opportunities created by ongoing economic reforms.
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