NICA urges shift from cash-based economy, says credit access key to Nigeria’s industrialisation

National Institute of Credit Administration (NICA) has called for a shift from Nigeria’s cash-based economy to a credit economy to accelerate industrialisation and expand economic opportunities.

Prof. Chris Onalo, registrar/chief executive officer of NICA, made the call in a statement by the institute in Lagos on Sunday. Mr Onalo noted that accessible and responsibly managed credit was critical to economic development.

He said a credit economy would enable individuals and businesses to finance productive activities, acquire assets and expand operations without providing the entire funding requirement upfront. He said the approach would support farmers, manufacturers, traders and entrepreneurs while facilitating financing for housing, education and other long-term investments.

According to him, the transition will require a culture of creditworthiness, reliable credit information, responsible lending, and the capacity and willingness to repay. He said that NICA’s advocacy was anchored on the National Institute of Credit Administration (Establishment) Act No. 26 of 2022, which established the institute and provided for the regulation, supervision and professionalisation of credit administration in Nigeria.

He called for collaboration among the federal government, state and local governments, financial institutions, businesses and other stakeholders to deepen Nigeria’s credit infrastructure. He urged the federal government to establish a national credit economy development fund and incorporate credit education into relevant government programmes.

He also called on state governments to establish credit economy desks and support credit education for entrepreneurs, farmers, artisans and other economic participants. Mr Onalo urged banks, fintechs, microfinance institutions and other lenders to invest more in credit education and strengthen responsible credit-management practices.

He further called on corporate organisations to support the development of trade-credit infrastructure and credit-management capacity among their distributors and business partners. He said the need to deepen credit access was underscored by Nigeria’s relatively low level of credit intermediation.

He said data from the Central Bank of Nigeria (CBN) showed that total credit by other depository corporations stood at N58.14 trillion in June 2025, while consumer credit stood at N4.27 trillion. The CBN said personal loans accounted for 54.1 per cent of consumer credit, with retail loans accounting for the balance.

Mr Onalo said expanding credit access should be accompanied by stronger credit-management standards, financial education and responsible lending to guard against excessive indebtedness and loan defaults.

According to him, developing a credit economy should form part of Nigeria’s broader strategy for industrialisation and long-term economic growth. He urged stakeholders to support the professionalisation of credit administration and promote wider public understanding of creditworthiness to strengthen the country’s economic base. NAN