The federal government is working with the National Institute of Credit Administration (NICA) to develop a framework for consumer credit in the country.
To this end, NICA will provide advisory, policy drafting, legislative and regulatory advocacy services, while serving as catalyst for the process, among others.
Expected to be launched by the President soon, the consumer credit ecosystem will deliver to Nigerians the much desired robust and sustainable economic structure that would enable Nigerians to bring out the best in them. This will make Nigeria Africa’s economic power, boost increased economic activities, access consumer purchase using credit as well as being able to take business loans from banks under safe and sound sector-wide credit guarantee arrangements for the nation’s micro, small and medium enterprises (MSMEs).
In November 2022, the federal government had launched the NICA Act No 26 of 2022 with the objective to serve as a national body of expertise for matters relating to credit management in the country by setting professional standard, awarding professional qualifications in credit management; testing and assessing those who wish to become members, controlling, supervising and regulating the profession of credit management in Nigeria.
This also includes; enhancing, promoting and protecting the interest of business credit, consumer credit, financial credit and trade credit providers and grantors across sectors of the economy. The Act also enables NICA to promote the integrity and weigh the capacity of government at all levels to borrow for economic development against the backdrop of internal creditworthiness assessment of the overall economy.
Since the NICA Act was unveiled, the institute has continued to commit to the development of a holistic credit based economy.
In December, the Presidential Council on Industrial Revitalisation, formed a Technical and Regulatory Working Groups comprising of NICA, Central Bank of Nigeria (CBN), National Identity Management Commission(NIMC), and the Federal Competition and Consumer Protection Commission(FCCPC) to develop a framework to improve consumer credit in Nigeria, among others.
Other members are; the National Insurance Commission (NAICOM), Bank of Industry (BOI), the Federal Inland Revenue Service(FIRS), International Finance Corporation(IFC), the Ministry of Finance, the Ministry of Industry, Trade and Investment, as well as the Ministry of Digital Economy and Telecommunication.
The committee was given a five-month schedule to complete its objectives, according to a statement by the minister of Industry, Trade, and Investment, coordinating the process.
Reacting to this development, the registrar/chief executive officer(CEO) of NICA, Prof Chris Onalo, commended the government’s efforts to revitalise the industries in the country to increase production, consumption and financial inclusion.
He also observed Nigerians’ desires to buy things that they want on credit, especially, household appliances, automobile, mortgages, medical bills, loans, mobile telephone infrastructure, amongst others.
He explained that NICA is a regulatory professional body on matters relating to credit management profession in the country, as well as in supporting the economy to transit from cash based system to a robust credit driven economic regime which provides opportunity for the indigenes to drive the economy for a better life.
“With NICA’s statutory power, the federal government felt that this is the Institute to work with; the government can partner with NICA to advance economic development, particularly in moving the economic landscape from what it has been since independence to a new horizon,” he pointed out.
