The Federal Government is working with the National Institute of Credit Administration to develop a framework for consumer credit in Nigeria.
According to a statement from NICA on Thursday, signed by NICA Registrar/CEO, Prof. Chris Onalo, the institute will provide advisory, policy drafting, legislative and regulatory advocacy services, while serving as catalysts for the process, among others.
Onalo said, “Consumer credit ecosystem will deliver to Nigerians the much-desired robust and sustainable economic structure that would enable Nigerians to bring out the best in them to make Nigeria Africa’s economic power, boost economic activities, and improve access to consumer purchases using credit.”
He also commended the government’s efforts to revitalise the industries in the country to increase production, consumption and financial inclusion.
He also observed Nigerians’ desires to buy things that they want on credit, especially household appliances, automobiles, mortgages, medical bills, loans, mobile telephone infrastructure, among others.
Speaking on NICA, the professor of Credit Management says, “With NICA’s statutory power, the federal government felt that this is the Institute to work with; the government can partner with NICA to advance economic development, particularly in moving the economic landscape from what it has been since independence to a new horizon.”
In November 2022, the Federal Government launched the NICA Act No 26 to serve as a national body for matters relating to credit management in the country by setting professional standards, and awarding professional qualifications in credit management.
It is also empowered to test and assess those who wish to become members and control, supervise and regulate the profession of credit management in Nigeria.
In December, the Presidential Council on Industrial Revitalisation, formed Technical and Regulatory Working Groups comprised of NICA, Central Bank of Nigeria, National Identity Management Commission, and the Federal Competition and Consumer Protection Commission to develop a framework to improve consumer credit in Nigeria, among others.
Other members are the National Insurance Commission, Bank of Industry, the Federal Inland Revenue Service, International Finance Corporation, the Ministry of Finance, the Ministry of Industry, Trade and Investment, and the Ministry of Digital Economy and Telecommunication.
The Committee was given a five-month schedule to complete its objectives, according to a statement by the Minister of Industry, Trade, and Investment, coordinating the process.