In Nigeria, the Federal Government has reaffirmed its commitment to closing the credit gap for Micro, Small and Medium enterprises (MSMEs), local producers, and credit consumers.
The recently established National Credit Guarantee Company (NCGC) stated that this would enhance manufacturers’ access to credit.
While addressing participants at the Stakeholders’ Engagement Forum regarding NCGC’s launch in Lagos on Monday, Bonaventure Okhaimo, the Managing Director and Chief Executive Officer, revealed that the local manufacturing industry is still facing significant credit limitations. He cited a report from the Manufacturers Association of Nigeria (MAN) that showed a decline in exports by N746 billion during Q1’ 2025, dropping from N1.04 trillion in Q3 2024 to N294 billion. This decrease was mainly due to debilitating interest rates of 27.5%.
Furthermore, 767 manufacturers ceased operations in 2023, leading to more than 18,000 jobs being lost in 2024.
He stated, “MSMEs are the backbone of the Nigerian economy, contributing around 48 percent of GDP and comprising a large portion of our workforce. However, they still face challenges in obtaining credit. We do not provide direct loans. We offer partial credit guarantees. We will offer further specifics on our plans for accomplishing this through our comprehensive study.
Okhaimo clarified that the creation of NCGC was intended to serve as a strategic ally in reducing lending risks and broadening access, while also bolstering current work by Development Finance Institutions and governmental efforts aimed at addressing credit limitations.
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