The National Institute of Credit Administration (NICA) has called on the Federal Government to immediately provide the National Credit Guarantee Company (NCGC) with N2 trillion to expand access to credit for businesses and key productive sectors.
NICA Registrar and CEO, Prof. Chris Onalo, made the call in a Sunday statement on Nigeria’s credit economy. He warned that the recent bank recapitalisation may not drive growth unless more loans reach productive sectors.
Private sector credit stood at only 28% of GDP in June 2026, compared with 60–80% in many emerging markets.
Onalo said lending rates of 32%–35% have made formal credit too costly for manufacturing, agriculture, housing and education. He also blamed weak credit systems, limited credit bureau coverage, poor collateral enforcement and slow court recoveries for making banks more cautious.
He warned that the growing credit gap is pushing millions towards informal lenders and digital loan apps, increasing the risk of household debt and weaker funding for small businesses. He described the situation as a “credit paradox” where money remains in banks but fails to reach the real economy.
“Given the recent robust bank recapitalisation, the Federal Government should immediately capitalise the Nigerian Credit Guarantee Company (NCGC) with N2 Trillion.
“This broad-based guarantee will de-risk lending, unlock bank balance sheets, and upscale credit to MSMEs nationwide. It is the bridge between strong banks and a strong economy,” he said.
Onalo also called for single-digit intervention funds, stronger credit reporting, full digitisation of the National Collateral Registry, tighter digital lending rules and reforms allowing pension and insurance funds to support corporate bonds and infrastructure debt.
He urged all 36 states to establish Credit Access Departments.
President Tinubu established the NCGC in May last year with N100 billion initial capital. Yakubu Dogara was appointed chairman, while Bonaventure Okhaimo became MD/CEO.
The NCGC recently signed a risk-sharing deal with CREDICORP to provide partial credit guarantees and unlock wholesale funding through participating financial institutions.
