By Grace Alegba
Gov. Babajide Sanwo-Olu of Lagos State says responsible credit and strong regulatory frameworks are key to sustainable business growth and economic advancement in Nigeria.
Sanwo-Olu represented by the Permanent Secretary, Debt Management Office, Mrs Alake Sanusi, said this on Thursday during the 2025 National Credit Managers Conference, organised by the National Institute of Credit Administration (NICA) in Lagos.
Sanwo-Olu said credit played a vital role in the operations of businesses and households, adding that the quality of credit management could make or break the economy.
“Credit is key to every business and household in Lagos and across Nigeria; when credit flows well, shop shelves stock, factories run, farmers plant and entrepreneurs scale.
“But when credit is badly managed, when loans go bad, when rules are unclear, or when borrowers and lenders are not protected, everyone loses,” he said.
He said the conference’s theme, focusing on credit policy and regulation, was crucial to the nation’s economic development.
He commended NICA for championing the improvement and legal recognition of credit management in Nigeria.
The governor highlighted the Central Bank of Nigeria’s ongoing initiatives to introduce prudential rules and consumer protection standards.
“Regulators like the Central Bank of Nigeria have issued prudential rules and consumer protection standards that require institutions to have strong credit policies, proper loan classifications and fair treatment to customers,” she said.
“These rules are designed to keep our financial system safe while also ensuring ordinary Nigerians have access to responsible credits,” he said.
He said responsible credit should not be about access alone, but must include clear risk assessment, transparency, and ethical practices that protected both lenders and borrowers.
According to him, fair lending and robust consumer protection provisions ensure confidence in the financial system and shield vulnerable borrowers from harmful practices.
He reiterated the importance of accurately sharing credit information as a means of rewarding good borrowing behaviour.
“Credit bureaus and the credit reporting parts provide mechanisms to share credit information so that good borrowers are rewarded and risk is priced fairly.
“When credit data is accurate and shared, lenders can lend more confidently and at lower costs, and borrowers can build reputations they can use for the future.”
He cited recent regulatory changes—such as permissible collateral adjustment and sector recapitalisation—as evidence that credit managers and other stakeholders needed to remain proactive in tracking policy shifts.
He restated the state’s dedication to inclusiveness and ethical lending.
“We remain committed to supporting policies that improve financial social inclusion, strengthen credit reporting and encourage ethical lending practices,” he said.
He called on conference participants and all stakeholders to think critically about how to improve the country’s credit policies, make credit more accessible to more businesses and entrepreneurs and support regulators to strike a balance between necessary oversight and the flexibility that businesses need to thrive.
Participants at the event agreed that embracing responsible credit, ensuring fair rewards for good borrowers, and prioritising effective protection mechanisms would help build a resilient and thriving financial ecosystem for Nigeria.
Earlier, the Guest Speaker, Prof. Abiodun Adedipe, in a keynote address, gave two major points about regulation and policy regarding credit in Nigeria.
Adedipe stressed the need to make credit available, accessible and also affordable.
“That means in terms of policies and regulations, we have to find a creative way of designing them in such a way that the large number of Nigerians, estimated at about 90 per cent of adults, that go to the formal credit market, can actually access credit from the formal credit system.
“Secondly, is the fact that we have a national aspiration to grow our economy to a size of $1 trillion in the next five years. And my thesis is that if Nigeria is going to become that, then credit will play a very pivotal role,” he said.
He stressed the need to continually review the credit infrastructure and also see that we deepen the credit culture in Nigeria.
He said a lot was being done to bring improvement to the credit market in Nigeria in terms of regulation through provision of credit infrastructure, in terms of collateral registry, movable assets, credit guarantee among others.
Earlier, while making an opening speech, Prof. Chris Onalo, Registrar/CEO, NICA, admonished the graduating MCMAIP students to distinguish themselves in the ever-evolving field of credit management.
“This programme, which qualifies you for direct entry membership of the National Institute of Credit Administration (NICA), chartered, underscores the strategic importance of specialized credit knowledge in advancing economic development.
“Credit management remains the backbone of a strong and robust economy, enabling access to finance, enhancing business sustainability, and widening the doors of financial inclusion,” he said. (NAN)www.nannews.ng
Edited by Vivian Ihechu
