The National Credit Guarantee Company (NCGC) has called on banks and other financial services stakeholders to forge a robust partnership aimed at creating a more inclusive, resilient, and dynamic credit market in Nigeria.

The managing director of NCGc, Bonaventure Okhaima, made the call during the inaugural stakeholders’ engagement dorum on Monday in Lagos.

The theme of the event is, “Unlocking Access to Finance Through Credit Guarantees and Strategic Partnership”.

Mr Okhaimo said such collaboration would help in reshaping Nigeria’s credit landscape, thereby allowing micro, small and medium enterprises (MSMEs) to thrive.

He listed the stakeholders to include commercial banks, microfinance institutions, fintech companies, and development financial institutions (DFIs).

He said that the establishment of NCGC by the federal government was a bold step under President Bola Tinubu’s administration to de-risk lending, promote financial inclusion, and improve access to credit in the country.

“This initiative reflects a shared commitment to addressing critical challenges in Nigeria’s credit ecosystem and unlocking the immense potential within our economy,” Mr Okhaimo stated.

He commended the founding institutions of NCGC, the Ministry of Finance Incorporated (MOFI), Bank of Industry (BoI), Credicorp Ltd., and the Nigeria Sovereign Investment Authority (NSIA) for their support.

He also expressed gratitude to the Central Bank of Nigeria and the World Bank for their technical and institutional guidance.

Mr Okhaimo noted that Nigeria’s macroeconomic outlook continued to show promise, with a Gross Domestic Product (GDP) growth of 3.13 per cent in first quarter of 2025 after rebasing, driven by the services and non-oil sectors.

He acknowledged the severe credit constraints faced by MSMEs and manufacturers, largely due to high borrowing costs, inflationary pressures, volatile exchange rates, and high energy costs in spite of the growth.

“An estimated 80 per cent of MSMEs still lack access to formal credit due to collateral constraints and lenders’ risk aversion,” he said, citing NBS data.

He observed that while Nigeria’s formal financial inclusion rose from 54 per cent in 2020 to 64 per cent in 2023, about 26 per cent of the adult population remains financially excluded.

Mr Okhaimo commended Development Finance Institutions (DFIs) such as BoI, DBN, NEXIM, and BOA for their interventions, along with fintechs and government initiatives like Credicorp, which had enabled over 90,000 Nigerians to access structured consumer credit since April 2024.

The NCGC boss also highlighted the alarming decline in manufacturing exports, citing data from the Manufacturers Association of Nigeria (MAN), which reported a drop from N1.04 trillion in third quarter 2024 to N294 billion in first quarter 2025.

He attributed this largely to prohibitive interest rates and difficult access to credit.

“More than 40 per cent of manufacturers are unable to access the funds needed to operate at full capacity,” he said.

Mr Okhaimo added that 767 manufacturers shut down in 2023, leading to over 18,000 job losses.

On consumer credit, he revealed that as of January, total outstanding credit stood at N4.12 trillion, just 15.5 per cent of total bank credit, and less than three per cent of GDP, underscoring the massive unmet demand in the sector.

Mr Okhaimo said that NCGC was established with an initial capital of N100 billion to bridge the credit access gap by providing partial credit guarantees rather than lending directly.

“We are here to play the role of a guarantor, covering a portion of potential loan defaults. This reduces lenders’ risks and incentivises them to extend more credit,” he explained.

He emphasised that NCGC would work closely with participating financial institutions (PFIs), use technology and data to de-risk borrowers, and promote policies that make credit more accessible and inclusive.

“Together, we can ensure that viable borrowers, from farmers to manufacturers, are met with opportunity, not exclusion,” he said.

He affirmed NCGC’s readiness for business, saying the forum marks the beginning of a deep, strategic, and sustained partnership that will transform access to finance in Nigeria.

“Let us move from dialogue to design, from intention to impact,” he declared.

Biodun Adedipe, founder and chief consultant of B. Adedipe Associates Ltd., commended the NCGC as a “long-awaited institutional intervention in the Nigerian credit market”.

He noted its potential to drive inclusive growth and deepen industrial manufacturing.

Mr Adedipe underscored that while risks like moral hazard and political interference exist, the company had started on a strong footing with “well-defined modus operandi and mechanics” and a “solid leadership team”.

Chris Onalo, registrar/chief executive officer of the National Institute of Credit Administration (NICA) chartered, stressed the need for transparency and credibility in the NCGC’s processes to build confidence and effectively deliver on its mandate.

He also highlighted necessary factors for better integration of credit guarantee schemes within Nigeria’s broader financial inclusion agenda.

The collaborative efforts envisioned by the NCGC aim to ensure that viable partners, from farmers and traders to entrepreneurs and manufacturers, are met with opportunity rather than exclusion in Nigeria’s credit landscape.

(NAN)