The National Institute of Credit Administration (NICA) has praised the Federal Government for establishing the National Credit Guarantee Company (NCGC) to advance Nigeria’s economic development.
By Grace Alegba
The National Institute of Credit Administration (NICA) has praised the Federal Government for establishing the National Credit Guarantee Company (NCGC) to advance Nigeria’s economic development.
Prof. Chris Onalo, Registrar and Chief Executive Officer of NICA, said in a statement on Friday that the institution’s creation comes at an ideal time.
“With NCGC and Credicorp—Consumer Credit Corporation—Nigeria is now positioned to lead a new wave of economic progress across Africa,” said Onalo.
He stated that NICA, as a professional regulatory body for credit management in Nigeria, is prepared to support the NCGC in fulfilling its mandate.
Onalo described the NCGC’s launch as a major move to revitalise the economy and a potential catalyst for Nigeria’s industrial transformation.
He said credit companies play key roles in improving access to credit, fostering growth, supporting underserved groups, and building effective risk-sharing partnerships.
He outlined NCGC’s benefits as including easier loan access, job creation, broader financial inclusion, and potentially reduced interest rates.
He added that NCGC will enable easier access to loans for individuals and small businesses, leading to the growth of new and existing enterprises.
According to Onalo, broader access to credit could increase investments, create jobs, and stimulate industrial activity in local communities.
“Financial inclusion is a core aim of the initiative, helping reduce poverty and economic inequality, while supporting national GDP growth,” he noted.
He said the NCGC would also help lower interest rates by sharing lending risks with financial institutions.
“The NCGC could lead to reduced interest rates and fewer collateral demands, making loans more accessible,” Onalo explained.
He added that while industrialisation has not yet fully begun, the NCGC marks a strong step towards that future.
The NCGC is expected to begin full operations before the end of the second quarter of 2025. (NAN)