By Emeka Anaeto, Business Editor
Amidst ongoing efforts to increase access to credit for more Nigerian businesses and individuals, the leadership of the National Credit Guarantee Company, NCGC, has said that it is now ready to de-risk lending across Nigeria’s financial markets.
Speaking at the inaugural stakeholders’ engagement forum in Lagos, Managing Director of NCGC, Mr. Bonaventure Okhaimo, commended the efforts of other institutions in growing credit culture in Nigeria and promised to boost these efforts as the NCGC commences operations.
He stated: “we commend CrediCorp for enabling over 90,000 beneficiaries to access structured consumer credit since April 2024. NCGC will further support this momentum by de-risking lending and expanding access across underserved segments.
“We commend institutions like Bank of Industry (BOI), Development Bank of Nigeria (DBN), SMEDAN, and NEXIM for expanding access to credit and capacity support. NCGC will further de-risk lending and boost inclusive financing across the sector.
According to Okhaimo the NCGC represents a bold initiative and reflects the Federal Government’s strong commitment to de-risking lending, promoting financial inclusion, and improving access to credit for Micro, Small and Medium enterprises (MSMEs), local manufacturers and credit consumers across Nigeria.
The NCGC was birthed by a set of founding institutions which includes Ministry of Finance Incorporated (MOFI), Bank of Industry (BOI), Credicorp Limited, and the Nigeria Sovereign Investment Authority (NSIA).
Speaking on the imperatives that necessitated creation of NCGC Okhaimo stated: “To strengthen ongoing efforts by DFIs, financial institutions, and government initiatives in tackling credit constraints, the National Credit Guarantee Company Limited (NCGC) was established as a strategic partner to de-risk lending and expand access.
“With a N100 billion initial capital, NCGC complements existing interventions by providing credit guarantees that unlock sustainable financing for underserved sectors.
“Our mandate is clear: we are here to play the crucial role of a guarantor of loans, thereby reducing the risks for lenders and encouraging increased credit availability.
“We do not lend directly; rather, we provide partial credit guarantees, covering a portion of potential loan defaults. This innovative approach incentivizes financial institutions to extend more credit, confident in the knowledge that a part of the risk is borne by the NCGC.
“NCGC is a catalyst for economic transformation. By providing this much-needed safety net, we aim to expand access to finance to MSMEs, local manufacturers and credit consumers; thereby minimizing the risk exposure of Participating Financial Institutions (PFIs), lowering default rates, and ultimately driving economic growth and promoting financial inclusion”.
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