FG to Collaborate with NICA to Develop Consumer Credit Framework

Nume Ekeghe

The National Institute of Credit Administration (NICA), has announced that it will partner with the federal government to create a comprehensive framework for consumer credit in the country.

In a statement signed by the Registrar/CEO at NICA, Chris Onalo, it said the official launch is to be done by the President shortly as the consumer credit ecosystem aims to provide Nigerians with a robust and sustainable economic structure.

NICA said it will offer advisory services, assist in policy drafting, engage in legislative and regulatory advocacy, and act as a catalyst throughout the development process.

“This initiative is expected to position Nigeria as a leading economic power in Africa, fostering increased economic activities. It will grant individuals the opportunity to access consumer purchases using credit, along with the ability to secure business loans from banks. These loans will be provided under safe and sound sector-wide credit guarantee arrangements, specifically designed 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, “it said.

Onalo, commended the government’s efforts to revitalise the industries in the country to increase production, consumption and financial inclusion.