National Credit Guarantee Company Board Will Unlock MSME Financing, Says Shettima
Vice President Kashim Shettima on Wednesday inaugurated the Board of Directors of the National Credit Guarantee Company Limited (NCGC Ltd), reaffirming the federal government’s commitment to unlocking access to finance for micro, small, and medium enterprises (MSMEs) across the country.
The inauguration, which took place at the Presidential Villa in Abuja, marks a significant step in the government’s efforts to drive financial inclusion and stimulate job creation through improved MSME financing. Shettima described the NCGC as a strategic intervention designed to address the persistent barriers that prevent small businesses from accessing affordable credit.
“MSMEs are the backbone of our economy. With the launch of this company, we are providing a clear pathway to financial empowerment and sustainable growth,” Shettima said. “This company will reduce the risks for lenders and make it easier for entrepreneurs to access credit without traditional collateral.”
The NCGC, announced by President Bola Tinubu in his May 29 Democracy Day speech, is expected to serve as a credit guarantee institution that will work with commercial banks and financial institutions to provide guarantees for loans to MSMEs.
The initiative aims to de-risk lending to small businesses and increase the volume of loans extended to them.
Former Speaker of the House of Representatives, Hon. Yakubu Dogara, was appointed Chairman of the Board, while Mr. Bonaventure Okhaimo will serve as Managing Director and Chief Executive Officer. Other board members include Mrs. Tinoula Aigwedo (Executive Director, Strategy & Operations), Dr. Ezekiel Oseni (Executive Director, Risk Management), Ms. Yeside Kazeem (Independent Non-Executive Director), and representatives from the Nigeria Sovereign Investment Authority (NSIA), Bank of Industry (BOI), Ministry of Finance Incorporated (MOFI), and Nigerian Consumer Credit Corporation (CREDICORP).
In his remarks, Dogara said the creation of NCGC is a bold step toward economic empowerment and a critical component of democratic dividends. He emphasized that access to credit is essential to unlock the potential of Nigeria’s large and growing population of entrepreneurs.
Also speaking, Dr. Olasupo Olusi, Managing Director of the Bank of Industry and board member, said the formation of NCGC was the result of strategic collaboration among key institutions, including the BOI, MOFI, NSIA, CREDICORP, and the World Bank.
He stressed that the lack of credit guarantees had been a major obstacle for MSMEs and praised the new initiative as a long-awaited solution.
Vice President Shettima charged the board with a strong mandate to operate with integrity, diligence, and innovation. He urged them to bridge the gap between government policy and economic impact, saying their role goes beyond boardroom deliberations to delivering measurable results for ordinary Nigerians.
The NCGC is expected to commence operations in the coming weeks, with initial products designed to support MSMEs in agriculture, manufacturing, trade, and services. The company’s guarantees will cover a portion of the credit risk, encouraging banks to expand lending portfolios to small businesses that would otherwise be excluded from formal credit.
The launch of NCGC is one of several interventions by the Tinubu administration aimed at strengthening the private sector and reducing the economic exclusion of millions of Nigerians operating in the informal economy.
