NICA has praised the federal government’s intention to create the National Credit Guarantee Company (NCGC) by the end of this year’s second quarter.
President Bola Tinubu launched the historic initiative during his New Year’s address on Wednesday, and the institution stated it will transform loan availability for both individuals and important economic sectors.
Professor Chris Onalo, the registrar and CEO of NICA, responded to this development by pledging support for the idea.
This achievement, according to NICA, is a significant step in resolving the difficulties MSMEs have obtaining business loan finance, which is a vital component of sustained economic growth and development.
As this is in line with the institute’s statutory mandate under Section 1, Subsection 2(f) of the NICA Establishment Act, which gives the institute the authority to “consult with and make recommendations to the government, regulatory bodies, trade associations, the academic community, and other professional bodies on all matters related to credit management,” Onalo recalled the institute’s previous proposal to establish a National Credit Guarantee Corporation, which was submitted to the government in September 2024 through the Office of the Vice President.
He stated that NICA is prepared to offer strategic initiative, counsel, and assistance to the government and stakeholders in carrying out this crucial project as a reliable partner in developing Nigeria’s credit culture.
According to him, “by facilitating access to credit through a National Credit Guarantee Scheme, the NCGC is expected to catalyze job creation, stimulate robust economic activities, and enhance the resilience of Nigeria’s economy.”
“In this new year, my administration will further consolidate and increase access to credit for individuals and critical sectors of the economy to boost national economic output,” President Tinubu had previously said, highlighting his administration’s commitment to economic growth through expanded credit availability.
The National Credit Guarantee Company will be created by the federal government to increase risk-sharing options for businesses and financial institutions in order to accomplish this.