NICA advocates for professionalism and increased capitalization of CREDICORP

KEY POINTS

• Prof. Chris Onalo, Registrar/CEO of the National Institute of Credit Administration (NICA), has lauded the Federal Government’s inauguration of the board of the Nigerian Consumer Credit Corporation (CREDICORP) as a positive step.
• Onalo urged the government to leverage NICA’s expertise to ensure the new credit framework is managed by core professionals, warning that appointments not based on competence could undermine the system.
• NICA described the current funding for credit institutions as inadequate. Specifically, Onalo argued that the National Credit Guarantee Company (NCGC) needs its capital base increased from N100 billion to between N3 trillion and N4 trillion.
• The Registrar expressed concern over the exclusion of NICA—an institute established by an Act of Parliament—from the governance framework of these emerging credit institutions.

MAIN STORY

The National Institute of Credit Administration (NICA) has formally reacted to the recent inauguration of the Nigerian Consumer Credit Corporation (CREDICORP) board, calling it a milestone in Nigeria’s transition to a credit-driven economy. In an interview with the News Agency of Nigeria (NAN) on Monday, Prof. Chris Onalo, the Registrar of NICA, commended President Bola Tinubu for shifting the national culture away from a stifling, oil-driven cash economy toward a functional credit system.

However, Onalo emphasized that the success of CREDICORP and the National Credit Guarantee Company (NCGC) depends heavily on two factors: professional governance and robust capitalization. He noted that while the NCGC was launched in July 2025 with N100 billion to de-risk lending for MSMEs and manufacturers, this amount is “too small” for the scale of the Nigerian economy. He proposed a significant hike to at least N4 trillion to trigger massive inflows from foreign and private investors.

A significant portion of Onalo’s advocacy focused on the need for expert involvement. He expressed concern that NICA, despite its statutory role and years of advocacy for consumer credit schemes, has been excluded from the governance of these new bodies. According to Onalo, credible board appointments are essential to inspire public confidence, and he urged the Ministry of Finance and the Central Bank of Nigeria (CBN) to adopt deliberate policies that strengthen both the funding and professional oversight of these critical institutions.

WHAT’S BEING SAID

• “You must have a credible board that inspires confidence… If appointments are not based on competence and professional balance, the system may be undermined,” stated Prof. Chris Onalo.
• On the issue of funding: “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.”
• Regarding the President’s vision: “History will remember him [Tinubu]… a functional credit system would promote transparency, reduce corruption and expand economic participation.”

WHAT’S NEXT

• The institute plans to continue its advocacy, training, and policy advisory services to the government to ensure the sustainability of the credit economy.
• There is an expected push for the Federal Government to revisit the capital allocation for the NCGC in upcoming fiscal reviews to meet the proposed N3-4 trillion mark.
• NICA is seeking formal integration into the governance frameworks of CREDICORP and NCGC to provide technical and professional support.

BOTTOM LINE

The Bottom Line is that while the institutional bones of a Nigerian credit economy are being built, NICA believes the current “financial muscles” are not yet strong enough. For CREDICORP and the NCGC to truly transform the industrial landscape, they must move beyond “ceremonial” structures and embrace both massive recapitalization and the deep professional expertise of NICA.