Fidelity Bank Set to Disburse N5bn NCGC Credit Guarantee Line to Increase MSME Financing

Tier 1 bank, Fidelity Bank Plc, has announced its readiness to begin disbursement of funds under the N5 billion credit intervention program of the National Credit Guarantee Company (NCGC). The initiative is designed to expand access to finance for micro, small and medium enterprises (MSMEs), as well as women- and youth-owned businesses across Nigeria.

Fidelity Bank Plc Managing Director/Chief Executive Officer, Dr. Nneka Onyeali-Ikpe, disclosed this during the signing of a Memorandum of Understanding (MoU) between the bank and NCGC.

According to Dr Onyeali-Ikpe, the partnership with NCGC represents a significant step in the bank’s ongoing efforts to improve financial inclusion and stimulate economic growth through increased access to credit. “This guarantee will allow us to further expand financing opportunities for those who need it most, while strengthening our ability to support businesses in key sectors of the Nigerian economy,” he said.

The facility will cover critical sectors including food processing, secondary agriculture (such as fish and poultry processing), fashion, green energy, light manufacturing, agricultural value chain (feed mills and equipment manufacturing), export-oriented businesses and education.

Dr. Onyeali-Ikpe highlighted that Fidelity Bank has consistently supported diverse sectors through targeted initiatives such as the Green Energy Financing Program for renewable energy entrepreneurs, the Fidelity SME Hub for small businesses with a special arm – Creativerse, dedicated to the creative industry and the Fidelity Bank Education Support Scheme which provides affordable financing for educational infrastructure and technological upgrades.

“With the support of the NCGC Credit Guarantee, we can now extend financing to businesses that have traditionally been excluded from formal credit systems, without compromising our risk standards or operational efficiency,” he added. “While we have supported MSMEs with short-term facilities in the past, this partnership allows us to provide long-term credit facilities that enable businesses to expand sustainably.”

Over the past five years, Fidelity Bank has provided more than $500 billion in loans to MSMEs, empowering thousands of entrepreneurs and creating sustainable livelihoods.

Also speaking at the event, the Chief Executive Officer of NCGC, Bonaventure Okhaimo, highlighted that the organization was established to bridge the financing gap faced by MSMEs in Nigeria by mitigating lender risks through credit guarantees.

“Although MSMEs are key contributors to Nigeria’s economic development, many of them struggle to obtain financing from financial institutions due to perceived high risks,” he said. “Through the Credit Guarantee Scheme, the NCGC shares this risk with banks, making it easier for MSMEs to access much-needed capital.”

Okhaimo added that NCGC and Fidelity Bank will also collaborate to provide financial literacy and business management training to beneficiary MSMEs, ensuring that they have the knowledge and skills to effectively manage their loans and achieve sustainable growth.

The partnership between Fidelity Bank and NCGC reinforces both institutions’ shared commitment to promoting entrepreneurship, strengthening MSMEs and promoting inclusive economic development across Nigeria.

Ranked among Nigeria’s top banks, Fidelity Bank Plc is a fully-fledged commercial deposit bank serving over 9.1 million customers through digital banking channels, its 255 business offices in Nigeria and its UK branch, FidBank UK Limited.

The Bank has received numerous local and international awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award from the BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity mobile app from Global Business Outlook and the 2024 Most Innovative Investment Banking Service Provider award from Global Brands Magazine. Furthermore, the Bank has been recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.