The Registrar and CEO of the National Institute of Credit Administration (NICA), Prof. Chris Onalo, has emphasized the critical role that honoring financial obligations plays in the socioeconomic development of Nigeria. In a statement, Onalo stressed the importance of respecting credit obligations across all sectors, including trade, corporate, financial, and consumer credit. He pointed out that honoring payment commitments is fundamental to maintaining the integrity of the credit system, which is essential for building trust and confidence in the country’s business environment.
Businesses and individuals must ensure accurate and transparent credit records and avoid deceptive practices, he added. Onalo’s remarks come at a time when Nigeria is undergoing a significant shift from a cash-based transaction Economy to one that relies more heavily on credit. He pointed out that this transition would only be successful if the country embraced a “credit-cultured” mindset. This means that individuals and businesses must treat debt repayment as a fundamental responsibility rather than an optional task.
Advocacy for ethical credit practices in Nigeria.
Onalo emphasized that the failure to honor credit obligations could have far-reaching consequences, including damaged reputations, financial losses, penalties, and missed business opportunities. In this context, paying off debts is not just about financial stability; it is also about contributing to the larger goal of national development by ensuring that the credit system remains robust and reliable. The importance of maintaining integrity within the credit system cannot be overstated. Onalo stressed that businesses must ensure transparency, avoid deceptive practices, and keep accurate credit records to maintain trust and reliability.
He also called on businesses to cooperate with credit bureaus to create a healthier and more transparent credit environment for both local and international transactions. In his view, these steps are necessary not only to prevent defaults but also to foster an environment where credit transactions can be conducted with confidence, knowing that both parties will meet their obligations. As the statutory body responsible for overseeing, controlling, and regulating the credit management profession in Nigeria, NICA has long been a vocal advocate for the importance of ethical credit practices.
Concerns over unethical practices in credit management.
Last year, under Onalo’s leadership, the institute expressed concern about the rise of unethical behavior within the credit management profession, warning that such practices could lead to an increase in bad debts and undermine the stability of the country’s financial sector. In his remarks, Onalo highlighted that unethical conduct in credit management is not solely driven by economic factors but could also stem from a lack of ethical standards and oversight. He noted that such behavior is preventable through the enforcement of stringent ethical practices and adherence to professional standards.
In this regard, Onalo called for a comprehensive approach to credit assessment and evaluation, which takes into account not just the immediate financial needs of businesses but also their growth trajectories over time. This kind of in-depth analysis helps credit professionals position their clients in a way that supports sustainable business growth and long-term economic contribution. He emphasized that credit managers must gather detailed business information to develop effective strategies for mitigating the risk of defaults.
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Furthermore, Onalo also spoke about the necessity of continuous credit professionals’ developmental growth, encouraging them to frequently take part in training and retraining courses. By continuing their education, credit managers are better prepared to handle the constantly changing field of credit management and maintain the highest moral standards in their work. Adopting these ideas will be essential to guaranteeing the long-term prosperity and stability of the credit system as well as the overall economy as the nation continues its shift to a more credit-based society.