NICA credit access and management advocacy in Nigeria

The National Institute of Credit Administration (NICA) has been advocating for systemic improvements to credit access and management within the Nigerian economy.

Initially, NICA Registrar and CEO Prof. Chris Onalo called for the Federal Government to provide a N2 trillion injection into the National Credit Guarantee Company (NCGC). Onalo highlighted a “credit paradox” where high lending rates of 32% to 35% prevent funds from circulating in productive sectors like manufacturing and agriculture, noting that private sector credit in Nigeria remains significantly lower than the average in other emerging economies.

Following these calls for macro-level intervention, NICA shifted focus toward the operational practices of individual businesses. The institute advised Nigerian manufacturers to professionalize their trade credit management to protect working capital. To prevent bad debts and factory closures, NICA recommended implementing due diligence, strict credit limits, and the use of NICA-certified professionals, while encouraging companies to report credit histories to licensed bureaus to improve overall liquidity and risk identification.