NCGC, SMEDAN Partner to Expand Funding Access for MSMEs
By Patience Ikpeme
The National Credit Guarantee Company Limited (NCGC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have entered into a strategic partnership aimed at expanding access to finance for Micro, Small, and Medium Enterprises (MSMEs) nationwide.
The commitment was formalized through the signing of a Memorandum of Understanding (MoU) at the NCGC headquarters in Abuja. The agreement is designed to strengthen financial inclusion, support enterprise development, and drive economic growth by addressing one of the biggest challenges facing Nigerian businesses—access to affordable financing.
Under the terms of the agreement, both organizations will 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 grow, create jobs, and contribute to national development.
Speaking at the signing ceremony, the Managing Director and Chief Executive Officer of the NCGC, Dr. Bonaventure Okhaimo, described the partnership as a strategic intervention aligned with the Federal Government’s commitment to supporting entrepreneurship and unlocking economic opportunities. He noted that MSMEs remain the backbone of Nigeria’s economy due to their significant 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,” Dr. Okhaimo said.
The NCGC boss detailed the company’s achievements, noting that it has facilitated ₦32.78 billion in credit and provided more than ₦13.09 billion in guarantees through partnerships with financial institutions. He stated that these interventions have enabled 1,478 businesses and entrepreneurs to access financing while creating and preserving at least 1,682 jobs across various sectors and regions.
In his remarks, the Director-General of SMEDAN, Mr. Charles Odii, noted the importance of the collaboration 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,” Mr. Odii stated.
The collaboration will 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.
The corporate mandate of the NCGC centers on enhancing 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.
Industry stakeholders believe the partnership will open new opportunities for thousands of MSMEs, strengthening Nigeria’s entrepreneurial ecosystem and fostering greater economic resilience, productivity, and prosperity.
