Prof. Chris Onalo, Registrar and Chief Executive Officer of the National Institute of Credit Administration (NICA), has welcomed the inauguration of the board of the Nigerian Consumer Credit Corporation (CREDICORP), describing it as a step in the right direction for Nigeria’s evolving credit ecosystem.
The Federal Government on Thursday formally inaugurated the board of CREDICORP, an institution established in April 2024 as a development finance body to expand access to affordable consumer credit nationwide.
Speaking in Abuja on Monday, Onalo urged the Federal Government to tap into NICA’s technical expertise to promote professionalism, sound governance, and strong capitalisation—key ingredients for the success of the new consumer credit framework.
He said credible board appointments, combined with a substantial capital base for national credit institutions, would accelerate Nigeria’s transition toward a sustainable, credit-driven economy.
According to him, emerging institutions within the country’s evolving credit architecture, including the National Credit Guarantee Company (NCGC), would only deliver meaningful impact if governance systems were strengthened and funding levels significantly enhanced.
Onalo stressed that credit institutions are fundamentally people-oriented and therefore require leadership boards made up of professionals with deep understanding of credit management and financial systems.
“A credible board must inspire public confidence and ensure sound governance. When appointments are not anchored on competence and professional balance, the integrity of the system is placed at risk,” he said.
He, however, expressed concern over what he termed the marginalisation of NICA—an institute established by an Act of Parliament—from the governance structures of emerging national credit institutions.
Onalo noted that the institute had consistently advocated for the creation of consumer credit and credit guarantee schemes over the years, while also providing advisory support to successive administrations.
He recalled that Nigeria’s industrialisation efforts in the 1980s and 1990s were undermined by limited access to structured financing, adding that the dominance of a cash-based, oil-dependent economy hindered long-term industrial growth.
Commending President Bola Tinubu for promoting a shift toward a credit culture, he said a functional credit system would enhance transparency, curb corruption, and expand economic participation.
He also described the current capital allocation to credit institutions as grossly inadequate relative to Nigeria’s population size, market potential, and development ambitions.
“The existing capital base is insufficient to drive the transformation expected. If industrialisation and economic expansion are genuine priorities, these institutions must be robustly funded,” he said.
Onalo argued that the NCGC’s initial capital of N100 billion was too small and should be raised to between N3 trillion and N4 trillion to effectively support enterprises, manufacturers, and consumers.
President Tinubu established the NCGC to enhance access to credit for Micro, Small and Medium Enterprises (MSMEs), manufacturers, and individuals, with operations commencing in July 2025. The agency currently operates with funding support from the Ministry of Finance Incorporated (MOFI), Nigeria Sovereign Investment Authority (NSIA), Bank of Industry (BoI), and CREDICORP.
Onalo maintained that increasing the company’s capital base would unlock significant private sector participation and attract foreign investment inflows into the credit market.
He called on the Federal Government, Ministry of Finance, and Central Bank of Nigeria to adopt deliberate policies aimed at strengthening both the funding and governance structures of credit institutions.
He added that collaboration with professional bodies would enhance credibility and public confidence, while NICA would continue to provide advocacy, training, and policy advisory support.
He stressed that building a resilient and inclusive credit economy required sustained political will, strategic funding, and continuous engagement with professional stakeholders to ensure that affordable and structured credit becomes widely accessible across Nigeria.