By Erewunmi Peace

The National Credit Guarantee Company (NCGC) has signed a Memorandum of Understanding (MoU) with several Participating Financial Institutions (PFIs) to expand access to credit for youth-led and women-owned enterprises, Micro, Small, and Medium Enterprises (MSMEs), and underserved businesses across Nigeria.

Under the new arrangement, the NCGC will provide innovative guarantee products such as individual and portfolio guarantees, partial credit coverage of up to 60% of loans, co-guarantees, and technical assistance. Each PFI is expected to commit ₦5 billion during the pilot phase.

The initiative will prioritize critical sectors including agriculture, renewable energy, fashion, education, and export-oriented businesses, with the goal of reducing financial risks for lenders and making loans more accessible to small businesses.

“This partnership marks a major step in unlocking finance for entrepreneurs who have traditionally struggled to access credit. By working with banks, we are de-risking lending and giving women and youth the chance to build sustainable enterprises,” NCGC said in a statement.

The move has been widely welcomed as a significant boost for small businesses and job creation, particularly at a time when access to financing remains a major challenge for Nigerian entrepreneurs.