The National Institute of Credit Administration, NICA, has called on the Federal Government to immediately capitalise the Nigerian Credit Guarantee Company, NCGC, with N2 trillion to expand access to credit and unlock Nigeria’s productive economy.
The Registrar and Chief Executive Officer of NICA, Prof. Chris Onalo, made the call on Sunday in a statement on the state of the country’s credit economy, saying that the recent recapitalization of banks would not automatically translate into economic growth unless deliberate measures were introduced to increase lending to productive sectors.
He said private-sector credit stood at 28 per cent of Gross Domestic Product as of June 2026, significantly below the 60 to 80 per cent average recorded in emerging economies.
According to him, lending rates of between 32 and 35 per cent had made formal credit unaffordable for several key sectors, including manufacturing, agriculture, housing and education.
He said banks had also become increasingly risk-averse despite improved liquidity following the recapitalization exercise.
Onalo attributed the reluctance to lend to weaknesses in Nigeria’s credit infrastructure, limited credit bureau coverage, ineffective collateral enforcement and delays in judicial recovery.
The NICA boss warned that the widening credit gap was forcing millions of Nigerians towards informal lenders and digital loan platforms. He said the development could increase household debt and weaken the financial base of small businesses.
Onalo described the situation as a “credit paradox”, where funds were available within the banking system but were not circulating sufficiently into the productive economy.
He said the government must create mechanisms capable of reducing lending risks and encouraging banks to finance businesses that can create jobs and increase production.
He specifically urged the Federal Government to provide N2 trillion in capital for the NCGC to enable it to offer broad-based guarantees for lending to micro, small and medium enterprises, MSMEs.
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“Given the recent robust bank recapitalization, the Federal Government should immediately capitalize the Nigerian Credit Guarantee Company, NCGC, with N2 Trillion,” he said.
According to him, the guarantee would reduce lending risks, unlock bank balance sheets and increase credit access for MSMEs nationwide.
Onalo also called for single-digit intervention funds for agriculture, manufacturing, housing and the creative economy through relevant government institutions.
He recommended the establishment of an Office of the National Chief Credit Officer to coordinate federal credit policies, intervention funds and guarantee programmes.
He further proposed mandatory credit reporting by fintech companies, cooperatives and other lenders to strengthen the country’s credit infrastructure.
The NICA chief also called for the full digitization of the National Collateral Registry, saying this would reduce lending risks and improve borrowers’ access to finance.
He urged authorities to strengthen regulation of digital lenders to protect borrowers from predatory interest rates and unethical debt recovery practices.
Onalo also proposed reforms that would enable pension and insurance funds to invest more in corporate bonds and infrastructure debt.
The NICA chief called on all 36 state governments to establish Credit Access Departments that would work with financial institutions and the NCGC to support grassroots businesses.
“Bank recapitalization has given us stronger banks. What Nigeria needs now is coordinated, guaranteed and disciplined credit,” he said.
He added that improved credit access would enable financing to serve as a catalyst for enterprise development, job creation and sustainable economic growth.
Onalo said NICA was prepared to provide policy support, technical guidance and executive training to support the implementation of the proposed reforms.
NAN
