The National Credit Guarantee Company Limited reported on Tuesday in Abuja, that it has supported N64.13bn in loans to 174,495 borrowers throughout all 36 states and the Federal Capital Territory since launching its operations last year.
The Managing Director/Chief Executive Officer of the company, Dr. Bonaventure Okhaimo, shared this information while updating the State House reporters in Abuja regarding NCGC’s inaugural year of operations.
Okhaimo stated that the data, taken from NCGC’s program performance report as of 21 October, indicated that each N1 of guarantee had facilitated approximately N2.12 in loans across 19 participating financial institutions, including commercial banks, microfinance banks, and development finance institutions.
He stated, “We offer partial guarantees that reduce lending risks, increase credit availability, and stimulate economic development. We do not provide loans directly.
“When a Participating Financial Institution provides a loan to an eligible borrower, we back a portion of that loan and cover the loss if the borrower defaults.”
This enables lenders to approve borrowers they might usually decline, frequently with reduced collateral and more favorable conditions.”
He mentioned that 74,503 borrowers, or 42.7 percent, were female, while 22,616, accounting for 12.96 percent, utilized formal financing for the first time.
An additional 7,731 borrowers were noted in the youth empowerment category.
An additional 7,731 borrowers were noted in the youth empowerment category.
“Our PFIs indicated that there are 175,481 direct jobs linked to the borrowers we assist, and our report approximates an additional 739,310 indirect jobs, resulting in a total of 914,791 jobs affected,” Okhaimo mentioned.
Okhaimo stated that the NCGC introduced GuaranteeHer, a blended-finance, gender-sensitive credit guarantee framework, on July 29, with the Minister of Women Affairs and Social Development, Imaan Sulaiman-Ibrahim, as a distinguished guest.
It was officially revealed at the stakeholders’ forum for the company‘s first anniversary on September 3.
He clarified that instead of launching a new product, GuaranteeHer enhances current women-centered lending initiatives like Access Bank’s W Initiative, FirstBank’s FirstGem, FCMB’s SheVentures, Sterling’s Smart Women, and Fidelity’s FundHer, by adding a guarantee that enables lenders to provide reduced interest rates, minimal collateral, and extended tenors.
“Instead of developing another product, we enhance the programs that women are familiar with, enabling lenders to provide lower interest rates, reduced collateral, and extended tenors,” the MD noted.
