AFF 2026:Okhaimo advocates for credit guarantees as catalyst for Nigeria’s $1trn economy

Bonaventure Okhaimo, Managing Director and Chief Executive Officer of the National Credit Guarantee Company (NCGC), has called for greater adoption of credit guarantees to unlock Nigeria’s economic potential and drive the country toward its $1 trillion GDP target by 2030.

Delivering a keynote presentation at the 6th Africa Finance Festival (AFF) 2026 in Lagos, Okhaimo highlighted the critical role of credit guarantees in addressing structural barriers to finance, particularly for MSMEs, local manufacturers, and priority sectors.

In his presentation titled “The Role of Credit Guarantees in Nigeria’s ‘Future Forward Economy’”, Okhaimo described a future-forward economy as one driven by technology, powered by enterprise, and supported by inclusive financial systems. He noted that despite MSMEs contributing 48% to Nigeria’s GDP, they receive less than 5% of formal credit, creating a massive 40% credit gap. Local manufacturers, contributing 9.9% to GDP, also suffer from severely limited credit access.

Okhaimo emphasised that credit guarantees serve as a vital bridge between idle bank liquidity and productive sectors by de-risking lending, substituting collateral, and incentivising longer-term loans. He pointed out that private sector lending currently stands at just 14.09% of GDP — far below the global average of 61.27%.

Detailing NCGC’s offerings, the NCGC CEO outlined key features of its guarantees, including up to 60% coverage on outstanding principal, a maximum of N10 billion per individual guarantee, and flexible tenors for both term loans and working capital facilities. He also introduced portfolio guarantees designed to support smaller loans up to N50 million.

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Okhaimo identified priority focus areas for the agency, including agriculture value chains, women and youth-owned enterprises, renewable energy, the creative industry, manufacturing, solid minerals, export-oriented SMEs, and digital technology enterprises.

He stressed that credit guarantees benefit both borrowers and Participating Financial Institutions (PFIs) by improving access to finance, reducing credit risk, enhancing capital efficiency, and promoting portfolio diversification.

In conclusion, Okhaimo positioned NCGC as “the missing piece in Nigeria’s credit market architecture” — a strategic catalyst that will de-risk lending, deepen financial inclusion, and support the Renewed Hope Agenda’s vision of inclusive and sustainable economic growth.