President Bola Ahmed Tinubu has said working-class Nigerians and students can now access loans through financing schemes introduced or strengthened by his administration.
The president stated this in a statement posted on X on Monday while highlighting the progress recorded through the government’s credit and loan initiatives.
Tinubu said the measures were part of efforts to move Nigeria towards a credit-based economy and make financing more accessible to individuals and businesses.
He said working Nigerians could access consumer credit through the Nigerian Consumer Credit Corporation (CREDICORP), while students could finance their education through the Nigerian Education Loan Fund (NELFUND).
Tinubu also listed the Bank of Industry and Development Bank of Nigeria as institutions continuing to provide loans to businesses, while the National Credit Guarantee Company (NCGC) supports access to business credit by sharing lending risks with participating financial institutions.
According to the president, NCGC currently works with 19 financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.
One year after commencing operations, NCGC has issued ₦21.59 billion in guarantees, which has enabled participating lenders to extend ₦46.95 billion in loans.
The figures mean that every ₦1 in guarantees has helped unlock about ₦2.17 in credit.
Tinubu said 67,512 borrowers across 25 states and the Federal Capital Territory had received credit backed by NCGC, including 11,374 women.
He added that 33.5 per cent of the beneficiaries were first-time formal borrowers, giving more than 22,000 Nigerians their first entry into the formal credit system.
The president said access to credit could help Nigerians meet immediate financial needs while enabling businesses to invest, expand and create jobs.
The NCGC estimates that businesses supported through its guarantees account for 661,291 direct and indirect jobs.
Tinubu said his administration would continue expanding access to credit so that more Nigerians and businesses could benefit from the opportunities created by its economic reforms.
He wrote, “When I sought your mandate, I promised to move Nigeria towards a credit-based economy and to establish a loan guarantee scheme that would help small businesses overcome the barriers that keep them from finance.
“That promise was about something practical. A worker with access to credit can buy what the family needs and pay over time, and a small business can invest today against the income it expects tomorrow.
“We have been building the institutions to make that possible. Through CREDICORP, working Nigerians can access consumer credit. Our students can finance their education through NELFUND, while the Bank of Industry and Development Bank of Nigeria continue to lend to businesses.
“The National Credit Guarantee Company @ncgc takes on one of the hardest barriers to business credit.
“Many viable businesses still meet the same obstacle at the bank. Lenders see too much risk in a sound business when the owner has little collateral or no credit history.
“We established NCGC to help change that. It carries part of the lending risk with participating financial institutions, giving them greater confidence to lend to businesses and borrowers they might otherwise turn away.
“Today, NCGC works through 19 financial institutions: 13 commercial banks, three microfinance banks and three development finance institutions.
“One year into operations, we can see what that model is doing.
“NCGC has issued ₦21.59 billion in guarantees. On the strength of those guarantees, participating lenders have extended ₦46.95 billion in loans.
“That means every ₦1 in guarantees has helped unlock about ₦2.17 in credit.
“So far, 67,512 borrowers across 25 states and the FCT have received credit backed by NCGC. 11,374 are women.
“And 33.5 percent are first-time formal borrowers. For more than 22,000 Nigerians, this is their first entry into the formal credit system.
“They now have a credit record they can build. Each successful repayment strengthens that record and can make the next loan easier to secure.
“Credit matters because of what people can do with it. A trader can restock before the festive season. When a manufacturer takes a bigger order and buys another machine to fill it, another Nigerian gets a job.
“NCGC estimates that the businesses it has supported account for 661,291 direct and indirect jobs.
“This is how we move from reforms to opportunities. Our reforms laid the foundation. Credit gives Nigerians the means to build on it. Tens of thousands who stood outside formal credit a year ago are now inside, borrowing to grow.
“We will keep widening that road until the opportunities our reforms create reach homes and businesses in every part of Nigeria.
“Promise made, Promise Kept. We are moving from reforms to opportunities. Nigeria First. Bola Ahmed Tinubu, GCFR President.”
