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Economic growth

National Credit Guarantee Company Signs Strategic Partnerships to Foster Inclusive Economic Growth

Strategic Insights

— 1 min read

The National Credit Guarantee Company (NCGC) has made a significant stride in Nigeria's economic journey by formalizing strategic partnerships with leading Participating Financial Institutions (PFIs) through a Memorandum of Understanding (MoU) at the Victoria Hall, Lagos Continental Hotel. This ceremony marks a crucial milestone in Nigeria's pursuit of inclusive economic growth and unlocking access to finance for underserved communities. The partnership aims to provide credit guarantee solutions that de-risk lending to youth and women-led enterprises, as well as support Micro, Small, and Medium Enterprises (MSMEs), local manufacturers, and underserved credit consumers.

Key Takeaways:

  • The National Credit Guarantee Company (NCGC) has partnered with leading Participating Financial Institutions (PFIs) to provide credit guarantee solutions for youth and women-led enterprises, MSMEs, local manufacturers, and underserved credit consumers.
  • The partnership focuses on reducing barriers to finance, enabling PFIs to extend credit to underserved businesses and households, while NCGC absorbs a share of the risk.
  • NCGC has introduced innovative guarantee products, including Individual Guarantees, Portfolio Guarantees, Partial Credit Guarantees, Co-Guarantees, and Technical Assistance to support PFIs.
  • The pilot phase will focus on high-impact sectors such as agriculture, fashion, green energy, export-oriented businesses, and education.
  • NCGC is committing N5 billion in credit guarantees to each onboarded Participating Financial Institution, specifically targeting women-owned and youth-led MSMEs.
  • The initiative aims to stimulate job creation, strengthen value chains, and improve key financial metrics like credit-to-GDP ratio.

Statistics:

  • NCGC's innovative guarantee products will cover loans ranging from N50 million to N10 billion for term loans and working capital.
  • The Partnership aims to unlock access to financing for nearly half of Nigeria's GDP, which is contributed by MSMEs.
  • The pilot phase will focus on high-impact sectors, with a specific emphasis on agriculture, fashion, green energy, export-oriented businesses, and education.
  • NCGC is committing N5 billion in credit guarantees to each onboarded PFI, targeting women-owned and youth-led MSMEs.

Sources:

  • A Memorandum of Understanding (MoU) between NCGC and leading PFIs.
  • Interview with Tinuola Aigwedo, Executive Director of Strategy and Operations, NCGC.
  • Remarks by Bonaventure Okhaimo, Managing Director/CEO of NCGC, and Professor Oseni, Executive Director of Risk and Credit Control, NCGC.
  • NCGC's website and press releases.

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