FG Backs NCGC to Share 60% Credit Risk, Boost MSME Financing

FG Backs NCGC to Share 60% Credit Risk, Boost MSME Financing

JOEL OLADELE, Abuja 

The Federal Government has reaffirmed its commitment to supporting the National Credit Guarantee Company Limited (NCGC) in delivering on its mandate of sharing up to 60 percent of credit risk with financial institutions.

This is a policy designed to ease access to loans for Micro, Small, and Medium Enterprises (MSMEs), manufacturers, and individuals, thereby boosting economic growth and job creation.

The Minister of State for Finance, Dr. Doris Uzoka-Anite, gave the assurance yesterday in Abuja when she received the NCGC Board led by its Managing Director/Chief Executive Officer, Bonaventure Okhaimo, on a courtesy visit.

She commended the Company’s rapid establishment and professional management, describing it as a key pillar in President Bola Ahmed Tinubu’s Renewed Hope Agenda to boost industrial capacity and drive inclusive growth.

“The success of any institution rests on the calibre of its people. I have full confidence in the leadership and management of the National Credit Guarantee Company Limited to deliver on this vital mandate,” Uzoka-Anite stated.

Reiterating the Ministry’s commitment, the Minister said the government would continue to provide institutional support and guidance to ensure NCGC succeeds in unlocking financing for MSMEs and manufacturers, spurring diversification, and cushioning the economy against external shocks.

Speaking earlier, NCGC’s Chief Executive, Mr. Okhaimo, assured that the Company is structured to catalyse credit access nationwide.

“We are structured to provide assurance to lenders, thereby stimulating credit flow to productive sectors of the economy,” he said.

Permanent Secretary of the Ministry of Finance, Lydia Shehu Jafiya, also praised the progress made by the Company and reaffirmed the Ministry’s readiness to provide full support.

“With the right structures and leadership now in place, we are confident the company will play a transformative role in de-risking lending and empowering SMEs and manufacturers,” she noted.

The National Credit Guarantee Company Limited, which now reports to the Federal Ministry of Finance, was recently established by the Federal Government to bridge financing gaps, promote industrial growth, and broaden financial inclusion across the country.