The National Institute of Credit Administration (NICA) says it will convene financial institutions, policymakers and business leaders to discuss strategies for expanding access to credit and promoting economic inclusion in Nigeria.

Chris Onalo, registrar and chief executive officer of NICA, disclosed this in a statement on Thursday in Lagos.

He said the institute’s National Credit Managers Conference would hold on November 18 in Lagos.

The conference has the theme, “The Five Pillars of a Creditworthy Nation – Building Nigeria’s Credit Economy Model for Growth, Inclusion, and Stability”.

Mr Onalo said the conference would seek to develop a national action plan to advance a more inclusive, credit-driven economy.

He identified the five pillars of the proposed model as credit readiness, creditworthiness, credit management, compliance with credit rules and sustainable credit use.

According to him, the model is designed to prepare traders, farmers, artisans and other entrepreneurs to access and manage credit responsibly.

Mr Onalo said limited access to credit constrained businesses’ capacity to expand, create jobs and contribute to economic growth.

The World Bank’s Nigeria Country Private Sector Diagnostic reported that domestic credit to Nigeria’s private sector stood at 12.9 per cent of gross domestic product (GDP) in 2024.

The figure was below the sub-Saharan African average of 20.1 per cent and the lower-middle-income country average of 34 per cent.

The report identified limited access to finance as a constraint affecting key sectors, including agriculture, renewable energy and manufacturing.

Mr Onalo said NICA was working with market associations, cooperatives, employers and governments to promote credit readiness and responsible borrowing.

He added that the institute was collaborating with regulators, the judiciary, the National Collateral Registry and credit bureaus to strengthen the implementation of existing credit-related laws.

These include the Credit Reporting Act 2017 and the Secured Transactions in Movable Assets Act 2017.

The registrar said improved credit behaviour and more predictable enforcement of credit laws could reduce lenders’ risk exposure and make borrowing more affordable.

He urged banks, manufacturers and fintech companies to extend responsible credit facilities to underserved entrepreneurs rather than concentrating on established businesses.

Mr Onalo said NICA was contributing to a federal government initiative involving six professional bodies to train 10 million Nigerians in financial inclusion and literacy.

He said the conference was expected to attract representatives of government agencies, the Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation and development finance institutions.

Other expected participants include commercial banks, fintech companies, manufacturers, credit bureaus and other stakeholders.

Mr Onalo said the conference would provide an opportunity to discuss credit management, financial inclusion, regulatory effectiveness and sustainable economic development. 

(NAN)