NICA CALLS FOR CREDIT REFORMS TO BOOST INDUSTRIALISATION

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By:Muftau Fatimo

The National Institute of Credit Administration (NICA) has called on the Federal Government to strengthen Nigeria’s credit system by boosting funding for key financial institutions in a bid to accelerate industrialisation.

NICA Registrar/Chief Executive Officer, Prof. Chris Onalo, made the appeal in an interview with the News Agency of Nigeria (NAN) on Sunday in Lagos.

He urged the government to recapitalise the Nigerian Consumer Credit Corporation and the National Credit Guarantee Company, noting that the move would expand access to credit for businesses.

According to him, the initiative would also support the Federal Government’s goal 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 the National Collateral Registry should be strengthened to improve lending confidence and reduce credit risks, adding that Nigeria could become one of the world’s leading industrial economies if the government deliberately expanded access to productive credit.

The credit expert urged the government to fund nationwide awareness campaigns promoting a responsible borrowing and repayment culture.

He said many Nigerians avoided borrowing because of misconceptions that only poor people borrowed money, noting 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 the implementation of government economic programmes, urging government agencies to improve transparency and speed up the 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 also advocated the harmonisation of the Bank Verification Number, National Identity Number, and other national databases to enhance borrower traceability, while urging fintech operators to adopt technologies better tailored to Nigeria’s operating environment.

According to him, closer collaboration among policymakers, regulators, lawmakers, and industry players would strengthen the performance of the credit sector.

He disclosed that NICA has set up an Eminent Persons Group made up of distinguished fellows to engage the government through policy advocacy and strategic engagement.

He added that the initiative would deepen dialogue between the government and the credit industry in support of sustainable economic reforms.