Presidential jets seizure: Use professionals to ascertain creditworthiness in offshore contracts, credit, commercial transactions, NICA advises govts, agencies
National Institute of Credit Administration NICA
Presidential jets seizure: Use professionals to ascertain creditworthiness in offshore contracts, credit, commercial transactions, NICA advises govts, agencies
Nike Popoola
The National Institute of Credit Administration has advised different levels of government in the country, as well as other agencies and organizations, to establish the creditworthiness of investors, contractors and all other participants before signing any offshore contract.
The chartered professional body responsible for the control, supervision and regulation of credit management profession, as well as consulting with and making recommendations to the government, regulatory bodies, trade associations and other professional bodies on all matters relating to credit management in Nigeria, gave the advice in a statement reacting to the recent attempts by a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, to take over offshore assets of the Federal Government of Nigeria through subterfuge.
Zhongshan had impounded three of Nigeria’s aircraft in Paris, France, following the order of a French court in a dispute with Ogun State Government.
As a statutory body with the legal mandate to assist governments on all matters relating to credit management, the institute stressed the importance of the Federal government taking advantage of the specialism of the gazetted professional bodies in the country in formulating policies relating to not only domestic economic management issues, but also international credit and financial bilateral engagements.
The Registrar/Chief Executive Officer of NICA, Prof Chris Onalo, in a statement, noted that organizations with good creditworthiness status usually possess the integrity to executive contracts devoid of controversies.
He also said it is important for the Federal Government to ensure the inclusion of creditworthiness criteria to be met by any institution, organization, agency or State governments before standing as a guarantor for them on credit and other commercial matters, among others, as government no longer operate archaic governance system. This is because, if there is a default, the Federal Government must be held to discharge the obligation.
While the case in reference may not be a credit guaranteeing issue, what has transpired is a frequent occurrence in offshore credit arrangement deals.
There is need for the government to quickly work in collaboration with gazetted expert professional bodies to develop policies to save the government from future embarrassment.
The National Institute of Credit Administration is calling for a comprehensive overhauling of Nigeria’s economic and financial policies to include due diligence, creditworthiness assessment and rating, and an assemblage of specialist negotiating team selected from relevant sectors of experts. In doing so, government is collaborating with relevant professional bodies. Nigeria is blessed with talented, competent and integrity minded professional institutions and people who can impact on the government policies for success.
Access to the statement, “A fragile emerging economy as Nigeria should be looking forward to collaborating with people that are vested with knowledge in specific areas, not just with the people working in government alone. What’s the point of having chartered professional bodies in our land if the Federal government is not open to solicit for their expertise?
“We are calling for an overhauling of our country’s credit and financial policies at the federal level in respect to guaranteeing commercial obligations in favour of any subnational authorities in the country. We are calling on state governments to begin the process of cultivating and building creditworthiness status for themselves.
“As a statutory professional body with power to regulate credit management profession in Nigeria, the institute is here to assist state government in building their creditworthiness profile. The Federal Government should urgently review the policy of providing full faith of the Federal Government to support or guarantee any form of bilateral credit and other commercial transactions` for and on behalf of not only the subnational authorities, but also big time projects that require partnership and full faith of the Federal Government.”
