A credit system that enables participants in the unofficial economy and students to get credit for their studies and expand their enterprises has been demanded by the National Institute of Credit Administration.
According to The PUNCH, a nation that supports a healthy consumer credit system allows people to purchase products and use services on credit, with the option to make payments later which was contained in a statement released on Sunday by the organization in charge of oversight, control, and regulation of the credit management profession.
A well-developed credit system, according to Chief Executive Officer of NICA, Prof. Chris Onalo, would lessen cash transactions by allowing people to borrow money to fund urgent needs and other worthwhile enterprises, thereby promoting economic growth and stimulating domestic production.
“The informal sector, low-income earners, artisans, SMEs, associations under the agriculture sector, cooperative societies, association of importers and exporters, association of market women, supervisory workers, middle-class managers and their families, students in tertiary institutions, and other critical stakeholders,” according to Onalo, are stakeholders in the administration of consumer credit services.
“These individuals make up the majority of the labour force in the nation, yet frequently lack the resources to realize their aspirations. Student loans allow Nigerians to finance their education and begin repaying them once they are employed and qualified; they also enable importers and exporters to grow their businesses and establish themselves as significant players in global markets; farmers can use the funds to transition from small-scale to mechanized farming; and traders can acquire funds for expansion among others.”
Onalo went on to say that having access to finance would make it possible for that sector of the economy to be impacted by the state of the economy.
“These people need to experience the advantages of credit and be more aware of the government’s agenda for economic development, because these groups are compelled by nature to supply for their own needs, they contribute to the economy’s resilience.
Because the governments acknowledge the participants in this industry and that their GDP contribution exceeds even that of the largest corporations, they have persisted in making major contributions to the economy of industrialized nations,” Onalo stated.
