CREDICORP, NGGCL sign risk-sharing deal to expand consumer credit for Nigerians

The Nigerian Consumer Credit Corporation (CREDICORP) and the National Credit Guarantee Company Limited (NCGCL) have signed a Memorandum of Understanding (MoU) to establish a risk-sharing partnership aimed at expanding access to consumer credit for qualified Nigerians.

This was disclosed in a statement released by the CREDICORP on Friday.

The agreement is designed to reduce lending risks for financial institutions by providing partial credit guarantees, while unlocking more wholesale funding for consumer lending through CREDICORP’s network of Participating Financial Institutions (PFIs).

Under the partnership, the National Credit Guarantee Company, established last year by President Tinubu with a N100 billion initial capital, will provide partial credit guarantee coverage for lending and advances made through CREDICORP’s Participating Financial Institutions.

What they are saying

According to CREDICORP, the partnership is expected to support the Federal Government’s broader objective of deepening consumer credit penetration and improving access to affordable financing for households.

• “The collaboration will focus on consumer credit, including personal loans and household asset financing, as well as digital and technology-enabled financial services, with scope to extend to additional sectors as designated by NCGCL in line with its mandate,” CREDICORP explained in the statement.

It added that the guarantee structure is expected to reduce credit risk for lenders, enabling CREDICORP to channel more wholesale funding to eligible consumer borrowers.

More insights

Under the terms of the MoU, CREDICORP will provide wholesale funding, credit appraisal, implementation, and portfolio monitoring expertise across the participating financial institutions.

NCGCL, on its part, will provide partial credit guarantees alongside joint technical advisory support to help identify viable consumer borrowers and lending opportunities.

Both organisations will jointly oversee and consolidate reporting on all transactions originated through the PFI network to ensure that financed individuals remain commercially sustainable, economically viable, and socially beneficial.

The partnership is expected to strengthen confidence among participating lenders while supporting increased credit access for Nigerians who meet the programme’s eligibility requirements.

What you should know

CREDICORP, which was established in 2024 to expand access to credit and ease the financial burden on Nigerians, said it disbursed over N37 billion in the first year of its operations.

• The organisation is specifically tasked with building credit infrastructure to bridge the trust gap between lenders and borrowers, and to provide wholesale capital and credit guarantees through its portfolio companies.
• In February 2025, CREDICORP launched a credit scheme for the purchase of locally assembled vehicles.
• In the first phase of the scheme, credit facilities were provided to hundreds of buyers of motorcycles and tricycles assembled by Simba (TVS), Nigeria’s largest manufacturer of two- and three-wheelers.

Meanwhile, the NCGCL, established in 2025, is saddled with the responsibility of strengthening confidence in the financial system, supporting underbanked demographics such as women and youth, promoting industrialization, and generating employment opportunities.