By Grace Alegba
Prof. Chris Onalo, Registrar/Chief Executive Officer, National Institute of Credit Administration (NICA), has described the inauguration of the board of the Nigerian Consumer Credit Corporation (CREDICORP) as a positive development.
The News Agency of Nigeria (NAN) reports that the Federal Government on Thursday inaugurated the board of CREDICORP.
CREDICORP was established in April 2024 to operate as a development finance institution designed 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 capitalisation critical to the success of the new credit framework.
He said credible board appointments and increased capital base of key national credit institutions would strengthen the nation’s transition to a credit-driven economy.
He said 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.
According to him, credit institutions are people-oriented and require boards composed of core professionals with deep understanding of credit economy management.
“You must have a credible board that inspires confidence and provides sound governance. If appointments are not based on competence and professional balance, the system may be undermined.”
Onalo, however, expressed concern over what he described as 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 said Nigeria’s previous industrialisation 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 signalling a shift toward a credit culture, noting that a functional credit system would promote transparency, reduce corruption and expand economic participation.
“History will remember him (Tinubu),” he said.
He described the current capital allocation to the institutions as inadequate relative to Nigeria’s population, market size and industrial ambitions.
“The capital base is too small to drive the expected transformation. If government is serious about industrialisation and economic expansion, these institutions must be robustly capitalised,” he said.
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.
The funding was provided by government-backed institutions, including the Ministry of Finance Incorporated (MOFI), Nigeria Sovereign Investment Authority (NSIA), Bank of Industry (BoI), and CREDICORP.
According to him, a capital base of N100 billion for NCGC is too small.
“The National Credit Guarantee Company should go for at least three to four trillion naira because of the size of our economy. Nigeria can afford it.”
He also said that increased capital base will trigger 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 said 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.
“If we are to build a people-centred and industrialised Nigeria, access to structured and affordable credit must become the norm. Government must remain flexible and open to professional collaboration,” he said. (NAN)(www.nannews.ng)
Edited by Deborah Coker
