The National Institute of Credit Administration (NICA) has commended and congratulated the Federal Government for establishing the National Credit Guarantee Company (NCGC).

The commendation is contained in a statement signed by the Registrar/Chief Executive Officer, National Institute of Credit Management, Prof Chris Onalo.

According to the statement, although the establishment of the institution should have taken place earlier, it has nevertheless come at a most auspicious time.

“With the NCGC and Credicorp (which is Consumer Credit Corporation), both of which are established by the present Federal Government, Nigeria is set to soon lead a new economic development frontier in Africa.

“As a professional statutory body for the control, supervision and regulation of the credit management profession in Nigeria, NICA is ready to provide needed support that will enable NCGC to deliver on its mandate through collaboration, cooperation and partnership for professional competence building, ethical management of the mandate note, embracing innovative best practices, alignment with global standards, and proactive response to incompatible behaviours from participating stakeholders.

The establishment of the NCGC by the Federal Government is a significant step towards boosting Nigeria’s economy and potentially kick-starting the journey of industrialisation.

According to him, the purpose of any credit guarantee company is increased access to credit, promotion of economic growth, targeted support, and collaboration, among others.

He identified some of the key benefits of the NCGC as a simplified loan process, job creation, financial inclusion and lower interest rates, among others.

“While it’s too early to declare the journey of industrialisation has fully started, the
establishment of the NCGC is a promising step towards achieving that goal. The company is expected to commence operations before the end of the second quarter of 2025,” he added.