The National Credit Guarantee Company Limited (NCGC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have signed a Memorandum of Understanding aimed at improving access to finance for Micro, Small and Medium Enterprises (MSMEs) across Nigeria.
The agreement, signed at the NCGC headquarters in Abuja, is designed to strengthen financial inclusion, support enterprise development, and stimulate economic growth by addressing one of the biggest challenges facing small businesses—access to affordable financing.
According to a statement issued by NCGC on Wednesday, the partnership will enable both organisations to collaborate on initiatives that improve the creditworthiness of MSMEs, promote financial literacy, facilitate access to credit guarantees, and implement capacity-building programmes.
The statement noted that the collaboration is expected to help businesses expand operations, create jobs, and contribute more significantly to the Nigerian economy.
Speaking during the signing ceremony, the Managing Director and Chief Executive Officer of NCGC, Dr Bonaventure Okhaimo, described the partnership as a strategic intervention aligned with the Federal Government’s efforts to promote entrepreneurship and unlock economic opportunities.
He emphasised the critical role MSMEs play in Nigeria’s economy through employment generation and economic activity.
“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 said.
The NCGC chief highlighted the company’s achievements since inception, revealing that it had facilitated N32.78 billion in credit and provided more than N13.09 billion in guarantees through partnerships with financial institutions.
According to him, the interventions have enabled 1,478 businesses and entrepreneurs to secure financing while creating and preserving at least 1,682 jobs across various sectors and regions of the country.
In his remarks, the Director-General of SMEDAN, Mr Charles Odii, commended the leadership of NCGC and stressed the importance of the partnership in addressing financing challenges confronting small businesses, particularly nano and micro enterprises.
“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,” Odii said.
The statement added that the collaboration would also focus on knowledge sharing, stakeholder engagement, and awareness campaigns to educate MSMEs on available financing opportunities and the role of credit guarantees in reducing lending risks for financial institutions.
According to NCGC, the Memorandum of Understanding reflects the organisation’s mandate to expand access to finance through innovative credit guarantee solutions while supporting the Federal Government’s agenda of promoting private-sector growth, job creation, and sustainable economic development.
Stakeholders at the event expressed optimism that the partnership would create new opportunities for thousands of MSMEs, strengthen Nigeria’s entrepreneurial ecosystem, and improve economic resilience and productivity.
The development comes as NCGC recently launched a stakeholders’ engagement forum aimed at boosting credit access for MSMEs, local manufacturers, and credit consumers across the country.
