Small and Medium Enterprises Development Agency of Nigeria. Photo: SMEDAN
The National Credit Guarantee Company Limited and the Small and Medium Enterprises Development Agency of Nigeria have signed a Memorandum of Understanding to improve access to finance for Micro, Small, and Medium Enterprises across the country.
The agreement, signed at the NCGC headquarters in Abuja, seeks to strengthen financial inclusion, support enterprise development and stimulate economic growth by addressing one of the major constraints facing small businesses, access to affordable financing.
According to a statement released on Wednesday by NCGC, the partnership will see both organisations collaborate on initiatives to improve the creditworthiness of MSMEs, promote financial literacy, facilitate access to credit guarantees and implement capacity-building programmes to help businesses expand, create jobs and contribute more significantly to the economy.
Speaking during the signing ceremony, the Managing Director and Chief Executive Officer of NCGC, Dr Bonaventure Okhaimo, described the collaboration as a strategic intervention that aligns with the Federal Government’s efforts to support entrepreneurship and unlock economic opportunities.
He noted that MSMEs remain critical to Nigeria’s economy because of their contribution to 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 boss highlighted the company’s impact since inception, disclosing that it had facilitated N32.78bn in credit and provided more than N13.09bn in guarantees through partnerships with financial institutions.
According to him, the interventions have enabled 1,478 businesses and entrepreneurs to obtain financing while creating and preserving at least 1,682 jobs across different 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 tackling the financing challenges facing 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 stated.
The statement noted 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.
It added that the MoU reflects NCGC’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.
According to the statement, stakeholders 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 National Credit Guarantee Company launched a stakeholders’ engagement forum to boost credit access for Micro, Small and Medium Enterprises, local manufacturers, and credit consumers.
