NCGC, SMEDAN partner to expand MSME access to loans

The National Credit Guarantee Company Limited (NCGC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have signed a Memorandum of Understanding (MoU) to enhance financial access for Micro, Small, and Medium Enterprises (MSMEs) nationwide. This collaboration aims to bolster financial inclusion, foster enterprise development, and stimulate economic growth by tackling a primary obstacle for small businesses: access to affordable financing.

The partnership will involve joint initiatives focused on improving MSMEs' creditworthiness, promoting financial literacy, facilitating access to credit guarantees, and implementing capacity-building programs. These efforts are designed to help businesses expand, create jobs, and contribute more significantly to the Nigerian economy. Dr. Bonaventure Okhaimo, MD/CEO of NCGC, described the collaboration as a strategic intervention aligning with the Federal Government's goals to support entrepreneurship and unlock economic opportunities.

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Through this partnership with SMEDAN, we are creating a stronger framework that will enable more businesses to access the financing they need to scale, innovate, and thrive.

Okhaimo highlighted the critical role of MSMEs in Nigeria's economy, citing their substantial contribution to employment generation and economic activity. He noted that NCGC has already facilitated N32.78 billion in credit and provided over N13.09 billion in guarantees through partnerships with financial institutions. These interventions have enabled 1,478 businesses and entrepreneurs to secure financing, leading to the creation and preservation of at least 1,682 jobs across various sectors and regions.

Mr. Charles Odii, Director-General of SMEDAN, commended the NCGC leadership and emphasized the partnership's importance in addressing the financing challenges faced by small businesses, particularly nano and micro enterprises. He stated that this collaboration would enable SMEDAN to leverage available financing opportunities and extend support to a larger number of MSMEs across Nigeria, thereby driving inclusive economic growth and job creation. The MoU also prioritizes knowledge sharing, stakeholder engagement, and awareness campaigns to inform MSMEs about available financing options and the role of credit guarantees in mitigating lending risks for financial institutions.

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This partnership will enable SMEDAN to leverage available financing opportunities and expand support to more small and medium enterprises across Nigeria, thereby driving inclusive economic growth and job creation.