Women, Youth Businesses: NCGC, Banks Signs MoU to Boost Credit Access

Nigeria’s National Credit Guarantee Company (NCGC) has endorsed a memorandum of understanding (MoU) with participating financial institutions (PFIs) to expand credit access for women and youth-led businesses.

The agreement was formalised on Thursday in Lagos, with financial sec- tor executives, development partners, and other stakeholders in attendance. Through the partnership, NCGC will provide credit guarantee solutions that derisk lending to micro, small and medium enterprises (MSMEs), local manufacturers, and underserved consumers. The initiative is designed to lower barriers to funding by allowing financial institutions to lend more confidently with NCGC absorbing part of the risk.

Bonaventure Okhaimo, managing director and chief executive officer of NCGC, said the deal goes beyond paperwork.

“This initiative is not just about signing documents, it is about forging a bold partnership that will reshape how credit is accessed in Nigeria,” he said.

Okhaimo said MSMEs, which account for nearly half of Nigeria’s GDP, have struggled to secure affordable financing due to risk perceptions.

He added that NCGC was set up to bridge this gap with products such as individual guarantees for loans of up to N10 billion, portfolio guarantees with caps of N5 billion, and partial credit guarantees covering up to 60 percent of loan value.

Tinuola Aigwedo, executive director of strategy and operations, said the initiative would empower young people and women entrepreneurs.

“This partnership is not just about financial inclusion, it’s about economic empowerment,” she said.

“By unlocking access to credit for youth and women entrepreneurs, we’re laying the foundation for a more resilient and equitable economy.”

Aigwedo said the onboarding of financial institutions is a milestone that aligns with the Renewed Hope Agenda of President Bola Tinubu, which “prioritises youth and women inclusion in the economy”.

In his closing remarks, Oseni, executive director of risk and credit control, thanked the financial institutions for their support.

“We all need one another for the economy to grow,” he said.

“This partnership is the beginning of an exciting journey — one that will bring finance to under- served communities and unlock the full potential of Nigeria’s entrepreneurial spirit.”