By Melvin Onwubuke
The National Institute of Credit Administration has called on the federal government to establish a broad credit guarantee system to support struggling businesses across the nation.
According to nairametrics, this drive is designed to bring in a new economic dimension, distinguished by enhanced productivity and swift development of cottage industries, informal sectors and SMEs.
In the statement, Prof. Chris Onalo, the Chief Executive Officer of NICA, highlights that, this new strategy will not only reform the Nigeria economic landscape but also notably boost production capacities.
Prof. Chris Onalo said “In the new economic dimension, businesses should be driven strictly on credit. The new dispensation should promote buying and consumption that is strictly credit driven.
“With credit availability, there will be increase in production because the capacity to produce in large quantity will be boosted, as the producers will have access credit to expand their productions through a well-funded guarantee arrangement, that will play the midwife role.”
“The new dispensation would enable access to credit from banks as lending institutions, will be willing to give out financial assets to producers of those goods and products for people to buy using credit” He added.
He pointed out the significance of maintaining a good reputation as this would be crucial, in determining credit worthiness under new system.
Recall, NICA earlier pushed for the enactment of a robust legislation to instill discipline, decency and honesty within Nigeria’s credit framework.
