Managing Director, National Credit Guarantee Company (NCGC), Bonaventure Okhaino, has said the company is on rescue mission to salvage the lack of access to credit in the Nigerian Economy.

Okhaino, who spoke yesterday at a stakeholders meeting in Lagos, said that NCGC was a long-awaited institutional intervention company in the Nigerian credit market, especially for small and medium enterprises.

He noted that President Bola Tinubu’s visionary leadership led to the establishment of the company.

According to him, by providing this much-needed safety net, NCGC aims to expand access to finance to MSMEs, local manufacturers and credit consumers; thereby minimising the risk exposure of participating financial institutions (PFIs), lowering default rates and ultimately driving economic growth and promoting financial inclusion.

“We will partner with PFIs, leverage data and technology, engage industry groups, build capacity, raise public awareness and advocate for enabling credit policies,” Okhaino said.

“Our success hinges on inclusive partnerships and collaboration with all stakeholders in the financial ecosystem. We firmly believe that by working together, we can build a more inclusive, resilient and dynamic credit market in Nigeria.

NCGC’s reassurance came as the federal government yesterday also officially launched YouthCred, a national credit scheme aimed at providing affordable consumer credit to 400,000 young Nigerians, including members of the National Youth Service Corps (NYSC).

The initiative, which is managed by the Nigerian Consumer Credit Corporation (CREDICORP), began disbursing credit on a rolling basis and has already reached its 1,000th beneficiary among corps members.

Okhaino explained that the bold initiative reflects the administration’s strong commitment to de-risking lending, promoting financial inclusion and improving access to credit for Micro, Small and Medium enterprises (MSMEs), local manufacturers and credit consumers across Nigeria, adding that Nigeria’s macroeconomic outlook reflects a steady trajectory towards inclusive and sustainable growth, driven by gradual reforms and sectoral diversification.

Against the backdrop of a renewed national ambition, it is important that we anchor today’s (yesterday’s) conversation with the evolving realities of our economic environment.” saying Nigeria’s macroeconomic outlook, “reflects a steady trajectory towards inclusive and sustainable growth, driven by gradual reforms and sectoral diversification.

“These macroeconomic headwinds, coupled with inherent structural inefficiencies, have created a complex environment for credit access,” he said, pointing out that among the most affected are Micro, Small, and Medium Enterprises (MSMEs), which form the backbone of Nigeria’s economy.”

Okhaino commended the Development Finance Institutions (DFIs), including BOI, DBN, NEXIM, CrediCorp and BOA, among others for supporting microfinance institutions, fin-techs, and MSMEs’ growth, saying their collective efforts are especially vital, as Nigeria’s formal financial inclusion rose to 64 per cent in 2023, up from 54 per cent in 2020, while total financial inclusion (formal and informal) reached 74 per cent.


He praised CrediCorp for enabling over 90,000 beneficiaries to access structured consumer credit since April 2024, saying NCGC will further support this momentum by de-risking lending and expanding access across underserved segments. He said NCGC was established as a strategic partner to de-risk lending and expand access, adding that wth a ₦100 billion initial capital, NCGC complements existing interventions by providing credit guarantees that unlock sustainable financing for underserved sectors.

“Our mandate is clear: we are here to play the crucial role of a guarantor of loans, thereby reducing the risks for lenders and encouraging increased credit availability. We do not lend directly; rather, we provide partial credit guarantees, covering a portion of potential loan defaults. This innovative approach incentivizes financial institutions to extend more credit, confident in the knowledge that a part of the risk is borne by the NCGC.” By providing this much-needed safety net, we aim to expand access to finance to MSMEs, local manufacturers and credit consumers; thereby minimizing the risk exposure of Participating Financial Institutions (PFIs), lowering default rates, and ultimately driving economic growth and promoting financial inclusion. Our success hinges on inclusive partnerships and collaboration with all stakeholders in the financial ecosystem.

“We firmly believe that by working together, we can build a more inclusive, resilient, and dynamic credit market in Nigeria. To achieve this, we will partner with PFIs, leverage data and technology, engage industry groups, build capacity, raise public awareness, and advocate for enabling credit policies. This forum is not just a formal gathering it is a strategic call to action. We invite you, our financial institutions and partners to join us in building a future where credit is accessible, risk is shared, and growth is inclusive. Together, we can ensure that viable borrowers, whether farmers, traders, entrepreneurs, or manufacturers are met with opportunity, not exclusion, as NCGC strengthens the credit value chain through risk-sharing mechanisms.

Also speaking, Biodun Adedipe, Founder/chief Consultant, B. Adedipe Associates Limited said that the company coming into existence, signifies the component of the credit market that can strongly drive inclusive growth and deepen industrial manufacturing, urging that all stakeholders should collaborate to make it work. He said that the greatest risks are moral hazards and political interferences which it must guide against in order to realise its potential to operate profitably. The company has started on a good note with well-defined modus operandi and mechanics, and it has a solid leadership team,” Adedipe said.

The forum was not just a formal gathering it was a strategic call to action. With a N100 billion initial capital, NCGC complements existing interventions by providing credit guarantees that unlock sustainable financing for underserved sectors. NCGC mandate is clear: to play the crucial role of a guarantor of loans, thereby reducing the risks for lenders and encouraging increased credit availability.

NCGC does not lend directly; rather, the company provides partial credit guarantees, covering a portion of potential loan defaults. This innovative approach incentivises financial institutions to extend more credit, confident in the knowledge that a part of the risk is borne by the NCGC. While many Nigerians struggle to finance essential needs for housing, vehicles, healthcare, education, consumer credit remains under penetrated. As of January 2025, total outstanding was N4.12 trillion, down from N4.42 trillion in November 2024, and still represents only about 15.5 percent of total bank credit (about N8.24 trillion)

President Bola Tinubu had promised during his Democracy Day address on June 12 that the initiative would commence in July. True to that pledge, the government has now activated the YouthCred programme, which CREDICORP describes as more than just a loan facility.

According to the agency, YouthCred is also a national campaign to change how young people in Nigeria think about money, borrowing, trust, and financial responsibility.

“YouthCred is not just about credit,” the agency said. “It is a national effort at credit re-orientation, starting from the root, to reshape how young Nigerians think about money, building a credit history, credit scores, and trust.”

The programme starts with a simple but mandatory digital financial literacy module. All applicants must complete this training before they can access loans under the scheme. The training covers topics like how credit works, why repayment matters, and how to build and maintain a healthy credit score. Only after completing this course can applicants access structured, low-interest credit for needs such as relocation, digital devices, mobility, or small business support.

CREDICORP said the design of the initiative is intentional: “This ensures that Nigeria’s future workforce isn’t just embracing credit — they’re doing so responsibly.”

With the YouthCred programme now live, CREDICORP says it expects that over time, Nigeria will grow a generation of credit-aware workers who understand how credit systems operate, manage their debt wisely, repay on time, and build a formal credit profile. This, it believes, will create more economic opportunities for young people and foster long-term financial inclusion.

Although the scheme began with NYSC members, it is not exclusive to them. CREDICORP confirmed that YouthCred will soon be expanded to include all employed young Nigerians between the ages of 18 and 39, as well as youth-led businesses across the country. This broader rollout is expected to deepen access to both personal and business credit, especially among underserved populations.

Key features of the YouthCred programme include: Gamified financial education before access to loans, making learning about money and credit fun and interactive; No collateral or guarantor required to access the loans; Fully digital onboarding using Bank Verification Number (BVN) and National Identification Number (NIN); Fast approval and disbursement, or in some cases, direct delivery of financed products (such as devices); and Secure and private data handling, ensuring beneficiaries’ personal information is protected.

CREDICORP described YouthCred as an evolving programme with long-term impact. By equipping young Nigerians with the tools to responsibly access and manage credit, the initiative aims to support job creation, entrepreneurship, mobility, and digital inclusion.

Young Nigerians interested in the YouthCred scheme can visit www.youthcred.com to begin their application, starting with the financial literacy module.