The National Institute of Credit Administration (NICA) has enthusiastically endorsed the Federal Government’s plan to establish the National Credit Guarantee Company (NCGC) by the end of the second quarter of 2025. This initiative, announced by President Bola Tinubu in his New Year message, aims to bolster access to credit for Nigerian businesses, particularly micro, small, and medium enterprises (MSMEs). NICA, the chartered professional regulatory institute for credit management in Nigeria, views the NCGC as a pivotal step towards addressing the persistent credit challenges faced by MSMEs, thereby fostering sustainable economic growth and development.
NICA’s support stems from the recognition that access to credit is a fundamental driver of economic prosperity. MSMEs, which constitute a significant portion of the Nigerian economy, often struggle to secure loans due to perceived high risks and lack of collateral. The NCGC’s mandate is to mitigate these risks by providing guarantees to financial institutions, encouraging them to lend more freely to MSMEs. This will unlock capital for these businesses, enabling them to expand their operations, create jobs, and contribute more significantly to the nation’s economic output.
The NCGC’s establishment is expected to be a game-changer for the Nigerian economy. By expanding risk-sharing instruments, it will stimulate lending to MSMEs, leading to a ripple effect of positive outcomes. Increased access to credit will empower businesses to invest in growth, innovation, and job creation. This will, in turn, boost economic activity, enhance the country’s overall economic resilience, and contribute to poverty reduction. The NCGC’s role as a catalyst for economic growth is therefore undeniable, and its potential impact on Nigeria’s economic landscape is significant.
NICA’s commitment to supporting the NCGC’s implementation underlines the institute’s dedication to advancing Nigeria’s credit culture. As the professional body responsible for regulating credit management practices, NICA recognizes the importance of a robust and well-functioning credit system. The institute pledges to provide strategic guidance, advice, and support to the government and other stakeholders involved in setting up the NCGC. This collaborative approach will ensure the successful implementation of the initiative and maximize its positive impact on the economy.
The establishment of the NCGC aligns perfectly with NICA’s overarching goal of promoting sound credit management practices in Nigeria. By facilitating access to credit for MSMEs, the NCGC will contribute to a healthier and more vibrant credit ecosystem. This, in turn, will strengthen the financial sector and promote overall economic stability. NICA believes that the NCGC is a crucial step towards building a more inclusive and sustainable economy in Nigeria, where businesses of all sizes have the opportunity to thrive.
In conclusion, the National Credit Guarantee Company represents a significant milestone in Nigeria’s quest for economic development. By addressing the credit challenges faced by MSMEs, the NCGC will unlock their potential to drive growth, create jobs, and contribute to national prosperity. NICA’s unwavering support for this initiative reflects the institute’s commitment to fostering a thriving credit culture and building a stronger Nigerian economy. The NCGC promises to be a catalyst for positive change, empowering businesses and creating a more inclusive and prosperous future for all Nigerians.
