Abuja: 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.
According to News Agency of Nigeria, Onalo emphasized the need for the government to recapitalise the Nigerian Consumer Credit Corporation (Credicorp) and the National Credit Guarantee Company (NCGC). He believes that enhancing these institutions would improve access to credit for businesses and support the Federal Government’s ambition of building a one trillion-dollar economy. Onalo highlighted that access to affordable credit remains crucial for entrepreneurship, business expansion, and sustainable economic development. He advocated for government policies that prioritize lending to startups, small businesses, and medium-sized enterprises rather than focusing mainly on individual borrowers.
Onalo stated that when businesses grow, the individuals behind them will build assets, create jobs, and improve their living standards. He also emphasized the need to strengthen the National Collateral Registry to improve lending confidence and reduce credit risks. Onalo suggested that Nigeria could become one of the world’s leading industrial economies if the government deliberately expanded access to productive credit.
He also urged the government to fund nationwide awareness campaigns promoting responsible borrowing and a repayment culture. Onalo noted that many Nigerians avoided borrowing due to misconceptions that borrowing is associated only with poor people. He pointed out that businesses in advanced economies rely on credit, even when they have sufficient liquidity, to expand operations and preserve investments. Onalo stated that stronger enforcement of credit obligations will improve trust in Nigeria’s financial system and that consistent prosecution of defaulters will discourage loan defaults and encourage responsible borrowing.
The NICA boss called for reforms to eliminate regulatory bottlenecks that slow the implementation of government economic programmes. He urged government agencies to improve transparency and speed up the implementation of credit-related policies. Speaking on financial technology firms, Onalo noted that many digital lenders face mounting challenges due to poor loan recovery and identity verification gaps. He called for the 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.
Onalo further suggested that stronger collaboration between policymakers, regulators, legislators, and industry operators would improve credit sector performance. He mentioned that NICA had established an Eminent Persons Group comprising distinguished fellows to engage the government through policy advocacy and strategic lobbying. He believes that this initiative would strengthen dialogue between the government and the credit industry to support sustainable economic reforms.