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Nigeria set to switch to credit-based economy

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By Okunloye Abiodun

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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SarahDiv
SarahDiv
1 year ago

The credit based economy is truly what is working in most developed countries but we shouldn’t make the mistake of comparison since culture and orientation differs. We just have to look to a system that best work for our economy.

jdpumping
jdpumping
1 year ago

Before using this credit based economy have we really done a thorough economical planthat it’s best suitable fora multi dimensional and tasking economy such asoursnotjust copying what works for other countries.

Ultra0711
Ultra0711
1 year ago

Although a shift to credit based economy is an act of further development as seen in developed countries but all factors should be consider before transforming the country’s system on whether it will suit us in Nigeria with our current infrastructures.

Abusi
Abusi
1 year ago

Credit based system will help Nigeria economy. There won’t be need to be hoarding cash around. Mobile transfers and Point of sales system will be encouraged more. So it’s a nice initiative.

Chibuzor
Chibuzor
1 year ago

This historic event celebrated the groundwork laid by the current government to move Nigeria’s economy from a cash-based to a credit-based system, which will spur further growth and development in the country.

Adesanyaj72
Adesanyaj72
1 year ago

By assigning this responsibility to the NICA, the government may rest assured that sloppy trade credit administration, unprofessional treatment in business credit transactions with SMEs, and unethical handling of consumer credit would be kept to a bare minimum.

DimOla
DimOla
1 year ago

The best option for Nigeria now is credit based economy provided infrastructures and good government policies are in place to support SMEs it will help our economy.

Hassan Isa
Hassan Isa
1 year ago

We ought to recognize that credit is the major driving force of any economic progress, and we should express our satisfaction that Nigeria is taking strides in this direction.

Nwachukwu Kingsley
Nwachukwu Kingsley
1 year ago

The pledge to take the lead in this effort, working with the right people (including the government) to guarantee that credit is at the heart of Nigeria’s economic future

Taiwoo
Taiwoo
1 year ago

It is impossible for any country’s economy to thrive without credit, and Nigeria needs to take a page from the playbook of economies that have already been established.

Godsewill Ifeanyi
Godsewill Ifeanyi
1 year ago

In addition to establishing NICA, the Act also provides the organization with the authority to improve the ethical and professional behavior of those involved in the provision of credit administration services.

Kazeem1
Kazeem1
1 year ago

The quality of credit necessitates its management by experts, and this group will grant accreditation to government agencies that have done an excellent job of that.

Christiana
Christiana
1 year ago

The current administration of Nigeria has laid the framework, which was recognized during this historic occasion, to transition the country’s economy from a cash-based to a credit-based system.

Tolaniiii
Tolaniiii
1 year ago

Most developed countries have credit-based economies, although culture and orientation differ. Just find the finest system for our economy.

Bola12
Bola12
1 year ago

The credit-based economy is now the optimal choice for Nigeria; provided that the necessary infrastructures and sound government policies are in place to encourage small and medium-sized enterprises (SMEs), it will be beneficial to our economy.

Iyanu12345ogg
Iyanu12345ogg
1 year ago

Despite the works of the credit based economy, we just have to look to a system that best work for our economy also.

Haykaylyon26
Haykaylyon26
1 year ago

If this credit based economy really work for us and will improve our economy is good we adopt it and most of well developed country are using this credit based economy if can learn from them and make use of it that will bring positive and improvement is better

Adeolastan
Adeolastan
1 year ago

Most of the world best country economy depend on credit,a country can’t boost it economy without encourage credit facility

Tonerol10
Tonerol10
1 year ago

Nigeria set to switch to credit-based economy. Government of Nigeria something act as if they don’t have plans. They love to copy yet they can not copy the good ones. I don’t credit base economy is our problems now

Remi1
Remi1
1 year ago

The organization has created a robust curriculum that could compete with any university’s curriculum and would instruct people on how to effectively manage their credit and pay off debt.

theApr
theApr
1 year ago

The majority of highly developed nations currently use this credit-based economy, so if we can learn from them and implement it, it will be beneficial and improve our economy. The sooner we adopt it, the better.