NICA Urges Professionals to Establish Credit Awareness Desks

Oluchi Chibuzor

The National Institute of Credit Administration (NICA) has called on employers of credit professionals across Nigeria to create credit awareness desks within their organisations.

This initiative aims to educate both existing and potential credit customers about the essential requirements for creditworthiness and effective strategies to address repayment challenges.

In a statement, the Registrar/Chief Executive Officer, NICA, Prof. Chris Onalo, said this will further help to bridge the gap between the credit grantors/providers and their customers to whom they have granted credit lines and those whose applications are on cue.

As the statutory body responsible for overseeing and regulating the credit management profession in Nigeria, NICA emphasised the importance of enhancing credit literacy among businesses and consumers. By establishing dedicated credit awareness desks, companies can play a proactive role in promoting responsible credit practices and financial stability.

He said: “There’s need for the employers of credit professionals to introduce credit awareness desks or credit counseling desks. There should be a department where credit professionals can give some hours of discussion with the credit customer applicant.”

According to the professor of credit management, who has been consistently advocating  a new economy in Nigeria driven by credit system, when a credit is approved, there should be monitoring to know if the transaction is making good progress or there are challenges.

Onalo said the professional credit manager or controller should ask questions on issues like, “Do you have any problem? Do you have any difficulty? How is your business going? How prudent use of credit grows or expands a business? The consequences of a failed credit, among others.

He said: “That interface will help to significantly educate credit customers, whether it is those that have borrowed money from financial institutions, or those who are distributors of manufactured products or good which they have collected from manufacturers on credit terms, etc. So, that desk must be there.”

As part of its duties on awareness creation, he said NICA is expanding its awareness campaign to include all credit matters across industries in the country. This will go a long way to smoothing the path for transitioning the economy from cash-based to credit system currently being put in place by the federal government.