For years, Nigeria’s micro, small and medium enterprises (MSMEs) have carried the weight of the economy with little to show in return. They have remained locked out of formal credit systems, forced to operate on the margins without the oxygen of finance. Now, with the creation of the National Credit Guarantee Company Limited (NCGC Ltd), the federal government appears ready to finally confront this structural flaw.
But let us be clear: intentions are not impact. If the NCGC will make any meaningful difference, we believe it must move beyond the paperwork, ceremonies, and board appointments – it must deliver real, accessible credit into the hands of the everyday entrepreneur. Anything less would be another exercise in public relations, not reform.
Vice President Kashim Shettima, during the inauguration of the NCGC board, called it a “bold step” toward bridging the financing gap for MSMEs. He is right. The move comes at a time when small businesses are struggling to survive amid inflation, high interest rates, and limited market access. These enterprises do not want handouts – they want to be trusted. They want a banking system that sees them not as risks but as opportunities.
This is where the true test begins. Will banks now take MSMEs seriously because of NCGC’s guarantees? Will credit actually become cheaper, faster, and more accessible in real terms? Or will the process get bogged down in bureaucracy, favor political allies, or worse – exclude the very businesses it claims to support?
We are of the opinion that government must remember that a credit guarantee is only as useful as the trust and speed it injects into the system. If banks remain hesitant, or if small business owners find the process too complicated or politicized, the guarantees become symbolic – yet another well-written idea that never touched the streets.
We say what the NCGC needs now is not just applause – it needs deliberate action in three key areas that will determine whether it becomes a meaningful engine for economic inclusion or just another missed opportunity.
First, there must be transparency. The process of qualifying for credit guarantees should be clear, public, and free from manipulation. MSMEs need to know exactly who is eligible, how to apply, what timelines to expect, and how the guarantee process will work. Every stage should be made corruption-proof and easy to understand – not hidden behind bureaucratic jargon or gatekeepers.
Second, we are of the opinion that the company must prioritise accessibility. It should not operate as a distant institution for the privileged few, but as a bridge to the everyday entrepreneur. From digital application platforms to simplified documentation and multilingual support, the system must be tailored to reach the trader in Kano, the baker in Calabar, the mechanic in Minna, and the tailor in Aba. This is the only way to truly deepen financial inclusion.
Finally, there must be a commitment to measurable impact. The government should set and publicly track clear Key Performance Indicators (KPIs). How many MSMEs receive guaranteed loans within the first year? How many of those businesses are led by women or young people? What sectors are reached? And most importantly, how many new jobs are created as a result? Without metrics, it becomes impossible to determine whether the policy is working – or simply sitting on paper.
