Lagos: Prof. Chris Onalo, Registrar/Chief Executive Officer of the National Institute of Credit Administration (NICA), has described the inauguration of the board of the Nigerian Consumer Credit Corporation (CREDICORP) as a positive development.
According to News Agency of Nigeria, the Federal Government inaugurated the board of CREDICORP, a development finance institution established in April 2024, to expand access to affordable consumer credit for Nigerians.
Onalo, in an interview with NAN, urged the Federal Government to leverage the expertise of NICA to ensure professionalism and adequate capitalization critical to the success of the new credit framework. He emphasized that credible board appointments and an increased capital base of key national credit institutions would strengthen the nation’s transition to a credit-driven economy.
He highlighted that Nigeria’s evolving credit architecture, including the National Credit Guarantee Company (NCGC), would only achieve meaningful impact if governance structures were strengthened and funding substantially increased. Onalo noted that credit institutions require boards composed of core professionals with a deep understanding of credit economy management.
Onalo expressed concern over the exclusion of NICA, an institute established by an Act of Parliament, from the governance framework of emerging credit institutions. He noted that NICA had consistently advocated for the establishment of consumer credit and credit guarantee schemes over the years and had provided advisory support to successive administrations.
The registrar pointed out that Nigeria’s previous industrialization efforts in the 1980s and 1990s were weakened by limited access to structured credit, adding that the dominance of an oil-driven cash economy stifled long-term industrial growth. He commended President Bola Tinubu for signaling a shift toward a credit culture, noting that a functional credit system would promote transparency, reduce corruption, and expand economic participation.
Onalo described the current capital allocation to the institutions as inadequate relative to Nigeria’s population, market size, and industrial ambitions. He stressed that the capital base is too small to drive the expected transformation, urging the government to robustly capitalize these institutions if serious about industrialization and economic expansion.
He added that the NCGC’s initial capital base of N100 billion was too small and should be increased to between three and four trillion naira. NAN reports that President Bola Tinubu established the NCGC to support Micro, Small and Medium Enterprises (MSMEs), consumers, and manufacturers in Nigeria. NCGC inaugurated its operations in July 2025 with an initial N100 billion capital to de-risk lending and expand credit access.
Onalo emphasized that a capital base of N100 billion for NCGC is too small and that the National Credit Guarantee Company should aim for at least three to four trillion naira due to the size of Nigeria’s economy. He also mentioned that increased capital base would trigger a massive inflow from both the private sector and foreign investors.
He urged the Federal Government, the Ministry of Finance, and the Central Bank of Nigeria to adopt a deliberate policy to strengthen funding and governance of the credit institutions. Onalo added that collaboration with professional bodies would enhance credibility and public confidence in the credit system.
He affirmed that NICA would continue to engage government through advocacy, training, and policy advisory, stressing that building a sustainable credit economy required inclusiveness and openness to expert input. Onalo concluded by stating that access to structured and affordable credit must become the norm if Nigeria is to build a people-centered and industrialized economy.