FAQ

The National Credit Guarantee Company (NCGC) is a government-backed institution established to support access to finance for Micro, Small, and Medium Enterprises (MSMEs), consumers, and eligible businesses in Nigeria. NCGC provides partial credit guarantees to reduce the risks financial institutions face when lending to viable but underserved borrowers.

The company is jointly owned by:

  • Ministry of Finance Incorporated (MOFI),
  • Nigeria Sovereign Investment Authority (NSIA),
  • Bank of Industry (BOI),
  • Nigerian Consumer Credit Corporation (CrediCorp)

A credit guarantee is a risk-sharing tool that assures a lender that a portion of their loan exposure will be covered by NCGC in case the borrower defaults. This reduces the lender’s risk and encourages them to extend credit to more borrowers, especially MSMEs and underserved
sectors.

A bank guarantee is a financial instrument where a bank commits to covering a client’s
obligations to a third party in case of default, typically used in trade and contract transactions.
A credit guarantee, on the other hand, is a risk-sharing mechanism where NCGC guarantees
part of a loan issued by a financial institution. It supports access to finance by encouraging
lending institutions to extend credit to borrowers they might otherwise consider too risky.

Applications may be submitted by eligible borrowers or through a Participating Financial Institution (PFI), such as a commercial bank, microfinance bank, or other CBN licensed lenders. The borrower must first meet the lending criteria of a PFI, which will then determine eligibility for a credit guarantee from NCGC.

Unlike short-term interventions, NCGC is structured as a sustainable institution dedicated to long-term impact and scalability.

NCGC typically guarantees up to 60% of the outstanding loan principal. In select cases such as green finance, women/youth-led enterprises, or strategic economic sectors, higher coverage may apply, subject to internal risk assessment.

NCGC targets a broad range of eligible entities, including:

  • Micro, Small, and Medium Enterprises (MSMEs)
  • Large corporates
  • Individual consumers with credible borrowing profiles
  • Women and youth-led businesses
  • Local manufacturers and exporters
  • Green and climate-smart enterprises

Participating Financial Institutions (PFIs) include:

  • Deposit Money Banks (DMBs)
  • Microfinance Banks (MFBs)
  • Development Finance Institutions (DFIs)
  • CBN-licensed fintech lenders and digital banks.

All PFIs must meet NCGC’s eligibility requirements related to regulatory compliance, governance, and lending capacity.

Yes. A guarantee fee is charged to the financial institution, based on the loan type, tenor, and associated risk. However, these fees are negotiated directly between NCGC and the PFIs.

  • Interested financial institutions can apply to become a Participating Financial Institution (PFI) by contacting NCGC directly. Eligibility criteria include regulatory status, governance structure, credit history, profitability and a demonstrated commitment to lending. Upon approval, the institution will sign a formal agreement with NCGC.

NCGC supports all productive sectors, but special priority is given to:

  • Agriculture and agro-processing
  • Manufacturing
  • Renewable and green energy
  • Digital and creative industries
  • Inclusive housing and infrastructure
  • Women and youth-owned enterprises.

These sectors are chosen for their potential to create jobs, improve exports, and stimulate inclusive economic growth.

If a borrower defaults and the financial institution has met all due diligence and monitoring obligations, NCGC will honor the guarantee by covering the agreed percentage of the outstanding principal (excluding interest).

No. NCGC is not a regulator but an institution regulated by the CBN. It is a financial institution incorporated under the Companies and Allied Matters Act (CAMA).

A list of accredited Participating Financial Institutions (PFIs) will be made available on the NCGC website and updated regularly. Borrowers should also consult directly with their bank to confirm whether it partners with NCGC for eligible credit guarantee coverage.

Through robust governance structures, transparent operations, and adherence to local and international best practices.

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