NICA Backs Credit Guarantee System for Struggling Businesses

Nume Ekeghe

The National Institute of Credit Administration (NICA), has called on the federal government to implement a credit guarantee system aimed at supporting struggling businesses.

In a statement, NICA’s Chief Executive Officer, Prof. Chris Onalo, highlighted the potential for a new economic landscape in Nigeria, emphasizing the role of credit availability in boosting productivity.

Onalo envisions a shift toward a credit-driven business model, where the economy thrives on buying and consumption powered by credit.

He anticipates that this approach will stimulate production by providing businesses with the necessary credit to expand their operations.

He said, “In the new economic dimension, businesses should be driven strictly on credit. The new dispensation should promote buying and consumption that is strictly credit driven. With credit availability, there will be increase in production because the capacity to produce in large quantity will be boosted as the producers will have access credit to expand their operations through a well-funded guarantee arrangement that will play the midwife role.