Embracing a new era of credit guarantee in Nigeria
National Institute of Credit Administration NICA
A call for transparency, collaboration, and innovation
As the National Credit Guarantee Company (NCGC) takes-off its operations, we recognize the immense potential of this initiative to revolutionize access to credit for Micro, Small, and Medium Enterprises (MSMEs) and other key sectors of the economy. To ensure the success of this endeavor, the National Institute of Credit Administration (NICA) chartered, is strongly emphasizing the critical importance of transparency, strict adherence to mandate, and avoidance of outdated paradigms.
As an expert statutory professional body established by law for the control, supervision and regulation of credit management profession in Nigeria—in accordance with section 3 and section 4 (2) (a) of NICA Establishment Act No. 26 of 2022, and by virtue of section 1 (2) (f) of NICA Establishment Act No. 26 of 2022 which empowers NICA to provide strategic expert advice to the government and industry bodies on credit management matters, we advise that the following key imperatives for success be observed by the management of NCGC:
1. Transparency: We urge NCGC to maintain transparency in its operations, ensuring that all stakeholders have access to clear information about its mandate, policies, and procedures.
2. Strict Adherence to Mandate: NCGC must strictly adhere to its mandate, focusing on providing credit guarantees and extension services that facilitate access to finance for MSMEs and other priority sectors.
3. Effective Public Awareness Creation: A comprehensive public awareness campaign is essential to educate stakeholders about the benefits and procedures of NCGC’s credit guarantee services.
4. Operational Partnership and Collaboration: NCGC should foster operational partnerships with financial institutions, umbrella bodies for MSME’s and other priority sectors, government agencies, and other stakeholders to ensure seamless implementation of its programmes.
5. Stakeholders Consultation and Involvement: Regular consultation and involvement of important stakeholders, including MSMEs, financial institutions, and relevant statutory professional bodies, will help NCGC tailor its programmes to meet the needs of its target beneficiaries.
6. Media Partnership: Collaboration with the media will be crucial in disseminating information about NCGC’s programmes and successes, as well as promoting transparency and accountability.
The National Institute of Credit Administration (NICA) chartered, being the lead advocate for the establishment of a National Credit Guarantee in Nigeria for over three decades believe that effective and professional implementation of NCGC will result to the benefits of:
1. Increased Access to Credit: NCGC’s credit guarantee schemes can increase access to credit for MSMEs, enabling them to grow and develop their businesses.
2. Economic Growth: By supporting MSMEs, NCGC can contribute to economic growth, job creation, and poverty reduction.
3. Improved Financial Inclusion: NCGC’s programmes can help promote financial inclusion, reducing the financial exclusion gap and increasing access to financial services for the indigenous business owners or the entrepreneurs in the country.
As NCGC embarks on its operations, NICA looks forward to working with the company to ensure the success of its credit guarantee activities. At NICA, we believe that with transparency, strict adherence to mandate, effective public awareness creation, operational partnership, and stakeholder consultation, NCGC can make a significant impact in promoting access to credit for MSMEs and driving economic growth in Nigeria.
Signed:
Prof. Chris Onalo, FICA, ICCF, B.Sc., M.A, PhD (credit management)
Registrar/Chief Executive Officer
National Institute of Credit Administration
Tel: +234-8034030160
Email: ceo@icanigeria.net
