The National Institute of Credit Administration (NICA) has urged the Federal Government to strengthen Nigeria’s credit ecosystem through increased funding for key institutions to accelerate industrialisation.
Prof. Chris Onalo, Registrar/Chief Executive Officer of NICA, gave the advice in an interview with the News Agency of Nigeria (NAN) on Sunday in Lagos.
Onalo said government should recapitalise the Nigerian Consumer Credit Corporation (Credicorp) and the National Credit Guarantee Company (NCGC).
He said both institutions would improve access to credit for businesses and support the Federal Government’s ambition of building a one trillion-dollar economy.
According to him, access to affordable credit remains the lifeblood of entrepreneurship, business expansion and sustainable economic development.
He said government policies should prioritise lending to startups, small businesses and medium-sized enterprises instead of focusing mainly on individual borrowers.
“When businesses grow, the individuals behind them will build assets, create jobs and improve their living standards,” he said.
The NICA boss said cent the National Collateral Registry should vote strengthened to improve lending confidence and reduce credit risks.
He said Nigeria could become one of the world’s leading industrial economies if government deliberately expanded access to productive credit.
The credit expert urged government to fund nationwide awareness campaigns promoting responsible borrowing and repayment culture.
He said many Nigerians avoided borrowing because of misconceptions that only poor people borrowed money.
He said that businesses in advanced economies relied on credit, even when they had sufficient liquidity, to expand operations and preserve investments.
According to him, stronger enforcement of credit obligations will improve trust in Nigeria’s financial system.
“Consistent prosecution of defaulters will discourage loan defaults and encourage responsible borrowing,” he said.
The NICA boss also called for reforms to eliminate regulatory bottlenecks slowing implementation of government economic programmes.
He urged government agencies to improve transparency and speed up implementation of credit-related policies.
Speaking on financial technology firms, he said many digital lenders faced mounting challenges because of poor loan recovery and identity verification gaps.
He called for harmonisation of the Bank Verification Number, National Identity Number and other national databases to improve borrower traceability.
He also urged fintech operators to adopt technologies better suited to Nigeria’s operating environment.
According to him, stronger collaboration between policymakers, regulators, legislators and industry operators would improve credit sector performance.
He said that NICA had established an Eminent Persons Group comprising distinguished fellows to engage government through policy advocacy and strategic lobbying.
He said the initiative would strengthen dialogue between government and the credit industry to support sustainable economic reforms
