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Nigeria set to switch to credit-based economy

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By Abiodun Okunloye

The transition would serve as a catalyst for economic development and growth.

Nigeria has begun the transition from a cashless Economy towards a credit-based economy, President Muhammadu Buhari said during the public launching of the National Institute of Credit Administration (NICA) as a charter in Victoria Island, Lagos. Dr. Zainab Ahmed, minister of Finance, budget and national planning, spoke on behalf of the president and said that the occasion marked the unprecedented foundation that the current government has established for the transformation of Nigeria’s economy from a cash-based to a credit-based system that would act as a catalyst for Economic Development and growth.

Charging the NICA to guarantee that poor management of Trade credit, unprofessional treatment in business credit transactions with Small and Medium Enterprises (SMEs) and unethical handling of consumer credit be reduced to the barest minimum. Pres. Buhari applauded the work of loyal Nigerians and professional organizations like NICA as well as and specifically, Mr. Chris Onalo, who is a Professor of credit management that is responsible for the course of the past three decades promoted the course of credit management Education in Nigeria.

The credit-based economy must commence immediately – Onalo.

In addition, the registrar and CEO of NICA, Professor Chris Onalo, thanked the president for approving the NICA bill into law and also for accepting to openly unveil it. Prof. Onalo also emphasized that credit is the major driving force of any Economic Growth, and he expressed his happiness that Nigeria is taking steps in this direction. Prof. Onalo noted that since the economy is now mainly cashless, the next step to transform it into a credit-based economy must begin immediately.

He made the commitment that the institution would serve as a leader in this endeavour, collaborating with the appropriate parties, including the government, to make certain that the foundation of Nigeria’s economic future would be based on credit. He noted that no country’s economy in the world evolves without credit, and he urged Nigeria to take a page from the playbook of developed economies. He explained that the assumption of credit enables companies to produce goods and services today on credit, with the intention of paying for them tomorrow.

This Act would empower the NICA to improve credit professionalism.

According to Mr. Andy Ojei, president of NICA, the credit sector is well aware that credit operations are dynamic, making credit administration a challenging responsibility. In order to establish new businesses, expand current ones or develop old ones, everyone requires financing. Because credit experts are involved in every element of a company’s operations, credit administration is the mother of all professions, he noted. According to him, the Act that created NICA also gives the organization the authority to strengthen ethical and professional conduct in the course of providing credit administration services.

The institute had made a strong Curriculum that could contend with any university’s curriculum and would teach people how to get rid of debt and manage credit in the best way. He added that credit Empowerment is important for economic growth and development and that the group would work with several universities to make sure that students learn how to manage credit. Quality of credit requires that it be managed by professionals and that the body will accredit government agencies that have done a good job of managing credit in the country. He noted that they would like to work with the federal government, the states, corporations, and other important entities to put Nigeria on the path to credit growth.

With key player support, the institution affirmed to deliver its mandate.

Lastly, the president, represented by the minister of finance, budget and national planning, applauded the National Assembly for the continuous support it has provided to the administration in terms of delivering on its promises through the enactment of laws that are critical to the great accomplishments it has recorded so far. He then called on all the key players to give support to the institute in order for it to achieve its mandate for the creation of a strong credit-based economy.


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