NICA advocates for credit reforms to boost Nigeria's industrialization

NICA's Registrar/Chief Executive Officer, Prof. Chris Onalo, advised the government to recapitalize the Nigerian Consumer Credit Corporation and the National Credit Guarantee Company to improve access to credit for businesses and support the goal of a one trillion-dollar economy. Onalo emphasized that affordable credit is vital for entrepreneurship, business expansion, and sustainable economic development, suggesting that government policies should prioritize lending to startups, small businesses, and medium-sized enterprises. He also recommended strengthening the National Collateral Registry to boost lending confidence and reduce risks, and funding nationwide awareness campaigns to promote responsible borrowing.

Onalo noted that many Nigerians avoid borrowing due to misconceptions, while businesses in advanced economies rely on credit for expansion. He also called for stronger enforcement of credit obligations, consistent prosecution of defaulters, and reforms to eliminate regulatory bottlenecks. Regarding fintech firms, he highlighted challenges with loan recovery and identity verification, urging harmonization of national databases like the Bank Verification Number and National Identity Number.

NICA has established an Eminent Persons Group to engage the government through