Speaking at the first stakeholders’ engagement event in Lagos, NCGC Managing Director Mr. Bonaventure Okhaimo praised other institutions’ efforts to develop Nigeria’s credit culture and pledged to support these initiatives as the NCGC gets started.
“We applaud CrediCorp for providing structured consumer credit to more than 90,000 beneficiaries since April 2024,” he said. Through de-risking lending and extending access to underserved groups, NCGC will further assist this momentum.
“We applaud organizations like NEXIM, SMEDAN, the Development Bank of Nigeria (DBN), and the Bank of Industry (BOI) for increasing access to loans and capacity support. NCGC will increase inclusive financing throughout the industry and significantly de-risk lending.
Okhaimo claims that the NCGC is a daring initiative that demonstrates the Federal Government’s steadfast dedication to lowering lending risks, advancing financial inclusion, and enhancing credit availability for local manufacturers, Micro, Small, and Medium-Sized Enterprises (MSMEs), and credit consumers throughout Nigeria.
A group of founding organizations, including the Nigeria Sovereign Investment Authority (NSIA), Credicorp Limited, Bank of Industry (BOI), and Ministry of Finance Incorporated (MOFI), gave rise to the NCGC.
Speaking about the requirements that led to the establishment of NCGC, Okhaimo said: “The National Credit Guarantee Company Limited (NCGC) was created as a strategic partner to de-risk lending and increase access in order to support continued efforts by DFIs, financial institutions, and government initiatives in addressing credit constraints.
With an initial investment of N100 billion, the National Credit Guarantee Corporation (NCGC) has started a program to offer credit guarantees for long-term financing in underserved industries. The NCGC, which is mandated to operate as a loan guarantor, provides partial credit guarantees that cover a percentage of probable loan defaults rather than making direct loans.
Given that the NCGC bears some of the risk, this creative strategy encourages financial institutions to offer additional credit. In order to lower risk exposure for Participating Financial Institutions, the NCGC seeks to provide access to financing for MSMEs, regional manufacturers, and credit consumers.
