The agreement, signed at the NCGC headquarters in Abuja, is designed to tackle one of the most persistent challenges facing small businesses—limited access to affordable credit—while also deepening financial inclusion and stimulating broader economic growth.
Joint framework to expand credit access and business capacity
According to NCGC, the partnership will bring both institutions together to implement programmes focused on improving the creditworthiness of MSMEs, expanding access to credit guarantees, enhancing financial literacy, and delivering capacity-building initiatives to help businesses scale and create jobs.
The collaboration is also expected to strengthen stakeholder engagement and increase awareness among entrepreneurs about financing opportunities and the role of credit guarantees in reducing lending risks for financial institutions.
‘Strategic intervention’ aligned with FG economic agenda
Speaking at the signing ceremony, the Managing Director and Chief Executive Officer of NCGC, Dr Bonaventure Okhaimo, described the initiative as a strategic intervention aligned with government efforts to promote entrepreneurship and unlock economic potential.
He emphasised the importance of MSMEs in Nigeria’s economic structure, particularly their role in job creation and driving local 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.
NCGC highlights impact on credit and employment
Okhaimo also provided an update on the company’s performance since inception, noting that NCGC has facilitated N32.78bn in credit and issued more than N13.09bn in guarantees through collaborations with financial institutions.
He disclosed that these interventions have supported 1,478 businesses and entrepreneurs in accessing funding, while also contributing to the creation and preservation of at least 1,682 jobs across different sectors of the economy.
SMEDAN stresses inclusion for micro and nano enterprises
In his remarks, SMEDAN Director-General, Mr Charles Odii, welcomed the partnership and emphasised its importance in addressing financing constraints faced by small-scale businesses, particularly nano and micro enterprises that often struggle to meet traditional lending requirements.
“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 stated.
Strengthening Nigeria’s SME ecosystem
Beyond financing, the agreement also includes provisions for knowledge sharing, awareness campaigns, and coordinated engagement with stakeholders to improve understanding of credit guarantee systems and their role in reducing barriers to lending.
Officials say the broader objective is to build a more resilient SME ecosystem that supports innovation, productivity, and sustainable business expansion.
The statement added that the MoU reflects NCGC’s mandate to expand access to finance through innovative credit guarantee mechanisms while supporting the Federal Government’s agenda of private-sector development and job creation.
Outlook: expanding opportunities for small businesses
Stakeholders have expressed optimism that the partnership will unlock new funding pathways for thousands of MSMEs, strengthen Nigeria’s entrepreneurial base, and improve overall economic resilience.
With small businesses widely regarded as the backbone of Nigeria’s economy, the initiative is expected to play a significant role in addressing structural financing gaps and supporting long-term inclusive growth.