National Institute of Credit Administration (NICA) has applauded the federal government’s plan to establish the National Credit Guarantee Company (NCGC) by the end of the second quarter of this year.
The institute said the groundbreaking initiative, announced by President Bola Tinubu during his New Year address on Wednesday, is set to revolutionise access to credit for individuals and key sectors of the economy.
Reacting to this development, the registrar/CEO, NICA, Professor Chris Onalo promised its support to this initiative. According to NICA, this development marks a critical step in addressing the challenges that micro, small, and medium enterprises (MSMEs) face in accessing business loan credit—a key driver of sustainable economic growth and development.
Onalo recalled the institute’s earlier proposal for establishing a National Credit Guarantee Corporation, submitted to the government in September 2024 through the Office of the Vice President as this aligns with the institute’s statutory mandate under Section 1, Subsection 2(f) of the NICA Establishment Act, which empowers the institute to “consult with and make recommendations to the government, regulatory bodies, trade associations, the academic community, and other professional bodies on all matters related to credit management.”
As a trusted partner in advancing Nigeria’s credit culture, he said, NICA stands ready to provide strategic initiative, advice, and support to the government and stakeholders in implementing this vital initiative. To him, “the NCGC is expected to catalyse job creation, stimulate robust economic activities, and enhance the resilience of Nigeria’s economy by providing access to credit through a National Credit Guarantee Scheme.”
President Tinubu had earlier emphasised his administration’s commitment to economic growth through increased credit access, stating that: “In this new year, my administration will further consolidate and increase access to credit for individuals and critical sectors of the economy to boost national economic output. To achieve this, the federal government will establish the National Credit Guarantee Company to expand risk-sharing instruments for financial institutions and enterprises.”
