Before now, access to credits and loan facilities in Nigeria was plagued by high interest rates and stringent lending conditions usually related to the credit guarantee. In simple terms, it was near impossible for startups and SMEs to access affordable credit. Challenges such as these necessitated the thoughtful establishment of the National Credit Guarantee Company (NCGC) by President Bola Ahmed Tinubu.
The National Credit Guarantee Company (NCGC) is a government-backed institution designed to reduce lending risks, while boosting access to finance for businesses and individuals in Nigeria. Its primary purpose is to reduce credit risk for lenders, particularly for micro, small, and medium enterprises (MSMEs) and other underserved groups. Consequently, credit access is expanded, thereby promoting economic growth in Nigeria.
At the creation of the NCGC, qualified individuals were placed at the company’s helm of affairs. Amongst the many apt appointments is the designation of Mr. Bonaventure Okhaimo as the first Managing Director and Chief Executive Officer.
By this appointment, Mr. Okhaimo is expected to spearhead the prioritisation of the NCGC’s mandate to provide credit guarantees, especially for MSMEs. To achieve this, the company looks to de-risk lending for lenders, expand access to finance, support economic growth, and promote financial inclusion.
It was not intended for the NCGC to operate as a lending company. It will not disburse funds directly or through intermediaries. Rather, it is expected to provide partial credit guarantees that cover a portion of potential loan defaults, thereby sharing the credit risk with lenders.
While wielding the reins of NCGC, Okhaimo will champion the engenderment of financial inclusion for individuals and SMEs. By performing its role, the company will boost entrepreneurship and business growth. Better access to credit and capital will enable small businesses to expand, create jobs, and drive economic development.
A glance at the credentials of the pioneer MD/CEO of the newly established NCGC, Bonaventure Okhaimo, reveals that it is very unlikely that the company will fall short of its mandate. His flexibility and versatility as an individual is exposed by a strong career in banking, despite a law background.
Okhaimo’s educational journey started at the University of Benin where he obtained a law degree. As is the norm, he went on to get B.L. honours from the Nigerian Law School, Lagos. His quest for personal development and growth saw him through a Master’s degree from the Universidad Católica San Antonio de Murcia (UCAM), and recently an MBA from the prestigious Harvard Business School.
With over 30 years of professional experience in the banking industry, Okhaimo garnered expertise in banking operations, business development, and administration. He also mastered the nitty-gritty of corporate, retail, commercial, and consumer lending. As a corporate leader, he drives growth by inspiring those within his charge. This way, he will champion the cause of the NCGC while encouraging others around him to carry out their duties meticulously.
It becomes obvious that irrespective of the challenges that may threaten the progress of NCGC’s mandate, Bonaventure Okhaimo will trigger progress in the right direction, while overcoming challenges to influence financial inclusion. This is even more so, finding that other capable hands were placed in other important positions within the NCGC.
Conclusively, the establishment of the NCGC, including the strategic appointment of Bonaventure Okhaimo amongst others, is significant for advancing financial inclusion in Nigeria. By providing credit guarantees, the NCGC reduces risk for lenders, making it easier for individuals and businesses to obtain loans. In turn, this will catalyse economic activity, job creation, and improved living standards.
