NICA calls for N2 trillion injection into Nigeria's credit guarantee company

The National Institute of Credit Administration (NICA) has issued calls for improved credit access and financial inclusion to drive economic growth in Nigeria. NICA Registrar and CEO Prof. Chris Onalo urged the Federal Government to capitalize the National Credit Guarantee Company (NCGC) with N2 trillion to expand credit availability for businesses and productive sectors.

Onalo noted a “credit paradox” where, despite recent bank recapitalization, funds are not circulating sufficiently in the productive economy. He highlighted that private sector credit stands at 28% of GDP, significantly lower than the 60% to 80% average in emerging economies. High lending rates of 32% to 35% have made formal credit inaccessible to sectors such as manufacturing, agriculture, housing, and education.

Additionally, NICA congratulated Osun Governor-elect Ademola Adeleke, advising his administration to prioritize credit access as a pillar of economic policy. Onalo suggested that de-risking lending and strengthening credit bureaus could help convert Osun’s human capital and agricultural potential into productivity, ultimately creating jobs and expanding the state's tax base.