Lagos: The National Credit Guarantee Company (NCGC) has called on banks and other financial services stakeholders to forge a robust partnership aimed at creating a more inclusive, resilient, and dynamic credit market in Nigeria. The Managing Director of NCGC, Mr. Bonaventure Okhaimo, made the call during the inaugural Stakeholders' Engagement Forum, themed 'Unlocking Access to Finance Through Credit Guarantees and Strategic Partnership.'
According to News Agency of Nigeria, Okhaimo emphasized that such collaboration would help reshape Nigeria's credit landscape, providing the necessary support for Micro, Small, and Medium Enterprises (MSMEs) to thrive. He identified the primary stakeholders as commercial banks, microfinance institutions, fintech companies, and Development Finance Institutions (DFIs).
The establishment of NCGC by the Federal Government marks a significant step under President Bola Tinubu's administration to de-risk lending, promote financial inclusion, and improve access to credit in the country. Okhaimo noted the initiative represents a collective commitment to addressing challenges within Nigeria's credit ecosystem and unlocking economic potential.
Okhaimo acknowledged the support from founding institutions, including the Ministry of Finance Incorporated (MOFI), Bank of Industry (BoI), Credicorp Ltd., and the Nigeria Sovereign Investment Authority (NSIA). He also expressed gratitude towards the Central Bank of Nigeria and the World Bank for their technical and institutional guidance.
Despite the promise shown by Nigeria's macroeconomic outlook, with a GDP growth of 3.13 percent in the first quarter of 2025, Okhaimo highlighted the severe credit constraints faced by MSMEs and manufacturers. Challenges such as high borrowing costs, inflationary pressures, volatile exchange rates, and high energy costs were identified as significant hurdles.
Citing data from the National Bureau of Statistics (NBS), Okhaimo pointed out that approximately 80 percent of MSMEs lack access to formal credit due to collateral constraints and lenders' risk aversion. Although formal financial inclusion rose from 54 percent in 2020 to 64 percent in 2023, about 26 percent of the adult population remains financially excluded.
Okhaimo commended DFIs and government initiatives that have facilitated access to structured consumer credit for over 90,000 Nigerians since April 2024. However, he noted the alarming decline in manufacturing exports and attributed it to prohibitive interest rates and challenging access to credit.
The NCGC aims to bridge the credit access gap with an initial capital of N100 billion by providing partial credit guarantees. Okhaimo explained that this approach reduces lenders' risks and incentivizes them to extend more credit, fostering inclusivity in the credit market.
Economist Dr. Biodun Adedipe highlighted Nigeria's struggle with an underperforming credit system and praised the NCGC as a much-needed institutional intervention. Prof. Chris Onalo of the National Institute of Credit Administration stressed the importance of transparency and credibility in NCGC's processes to build confidence in its mandate.
The collaborative efforts envisioned by the NCGC are poised to transform access to finance in Nigeria, ensuring that viable partners, from farmers to manufacturers, are met with opportunity rather than exclusion.