New Initiative Aims to Bridge Access to Credit for Small Businesses, Revitalize Grassroots Economy
Vice President Kashim Shettima on Thursday inaugurated the Board of Directors of the newly established National Credit Guarantee Company Limited (NCGC Ltd), marking a significant step in the federal government’s push to enhance financial inclusion and empower small businesses.
Speaking at the Presidential Villa in Abuja, Shettima described the NCGC as a strategic intervention to address the longstanding financing challenges faced by Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.
“The NCGC is our response to a stubborn challenge that has stifled our economic potential for decades—access to finance. These entrepreneurs do not seek handouts; they seek the confidence of financial institutions to match the credibility of their ideas,” Shettima stated.
The company, approved by President Bola Tinubu on May 29, 2025, will provide credit guarantees to financial institutions, enabling them to lend more affordably to MSMEs. The move is expected to unlock capital for small businesses, which form the backbone of Nigeria’s economy but often struggle to secure loans due to stringent collateral requirements.
Former House of Representatives Speaker Yakubu Dogara was appointed as Board Chairman, while Mr. Bonaventure Okhaimo will serve as Managing Director and CEO.
Shettima emphasized that the NCGC aligns with the administration’s broader economic agenda, including job creation and grassroots development. “This initiative is a critical engine for inclusive and sustainable growth,” he said.
The launch comes amid ongoing government efforts to strengthen Nigeria’s MSME sector, which contributes nearly 50% of GDP and employs millions of Nigerians. Analysts say the success of the NCGC will depend on effective implementation and collaboration with banks to ensure credit reaches underserved businesses.
The board is expected to commence operations immediately, with priority given to high-impact sectors such as agriculture, manufacturing, and trade.
