NCGC signs historic MoU with financial institutions to strengthen youth, women-led businesses

NCGC credit guarantee initiative partners with financial institutions to expand loans for MSMEs, women, and youth, driving inclusive growth

NCGC credit guarantee initiative took a major step forward today as the National Credit Guarantee Company signed a Memorandum of Understanding (MoU) with Participating Financial Institutions (PFIs) at the Lagos Continental Hotel, Victoria Island.

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The agreement is designed to de-risk lending and expand credit access to underserved groups across Nigeria.

At the signing ceremony, attended by top banking executives, development partners, and policymakers, NCGC confirmed that the partnership will help PFIs extend credit to youth and women-led enterprises, local manufacturers, and MSMEs.

By absorbing part of the lending risk, NCGC aims to break long-standing barriers to affordable finance.

Mr. Bonaventure Okhaimo, Managing Director/CEO of NCGC, described the partnership as a bold step toward reshaping Nigeria’s credit landscape.

“This is not just about signing documents; it’s about creating a pathway for MSMEs, which contribute nearly half of our GDP, to access affordable financing,” he said.

NCGC’s guarantee products include individual and portfolio guarantees, partial credit coverage of up to 60%, and co-guarantees with technical support.

These tools, modeled after successful global practices in India, South Korea, and the UK, are expected to strengthen Nigeria’s financial ecosystem.

Executive Director of Strategy and Operations, Ms. Tinuola Aigwedo, stressed the human impact of the initiative: “This partnership is not just about financial inclusion, it’s about economic empowerment.

By unlocking credit for youth and women entrepreneurs, we’re building a more resilient and equitable economy.”

As part of the pilot phase, NCGC will commit ₦5 billion in credit guarantees to each participating institution, focusing on sectors such as agriculture, green energy, fashion, export businesses, and education.

In his closing remarks, Professor Oseni, Executive Director of Risk & Credit Control, noted: “We all need one another for the economy to grow.

This partnership is the beginning of an exciting journey that will unlock the full potential of Nigeria’s entrepreneurial spirit.”

The MoU aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, particularly its emphasis on youth empowerment, women’s economic inclusion, and local enterprise support.

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Stakeholders say this collective pledge represents more than an agreement it is a catalyst for inclusive growth, job creation, and national prosperity.