The National Institute of Credit Administration has urged the Federal Government to immediately inject N2 trillion into the National Credit Guarantee Company to boost access to credit for businesses and other productive sectors of the economy.

NICA’s Registrar and Chief Executive Officer, Prof. Chris Onalo, made the call in a statement on Sunday while commenting on the state of Nigeria’s credit economy.

Onalo said the recent recapitalisation of Nigerian banks would not, on its own, guarantee economic growth unless deliberate measures were implemented to direct more credit towards productive sectors.

He noted that private sector credit accounted for just 28 per cent of Gross Domestic Product as of June 2026, well below the 60 per cent to 80 per cent average recorded across emerging economies.

Onalo said lending rates ranging from 32 per cent to 35 per cent had made formal credit largely inaccessible to critical sectors of the economy, including manufacturing, agriculture, housing and education.

He added that banks had become increasingly cautious about lending despite improved liquidity following the recapitalisation exercise.

He attributed the banks’ reluctance to lend to weaknesses in Nigeria’s credit infrastructure, limited coverage by credit bureaus, ineffective collateral enforcement and delays in the judicial recovery process.

The NICA chief executive warned that the growing credit gap was driving millions of Nigerians towards informal lenders and digital loan platforms, potentially worsening household debt and eroding the capital base of small businesses.

He described the situation as a “credit paradox,” in which funds were available within the banking system but were not flowing sufficiently into the productive economy.

“Given the recent robust bank recapitalisation, the Federal Government should immediately capitalise the Nigerian Credit Guarantee Company (NCGC) with N2 Trillion.

“This broad-based guarantee will de-risk lending, unlock bank balance sheets, and upscale credit to MSMEs nationwide. It is the bridge between strong banks and a strong economy,” he said.

In addition to the NCGC, Onalo urged the government to provide single-digit interest-rate intervention funds for agriculture, manufacturing, housing and the creative sector through relevant agencies.

He also advocated the creation of an Office of the National Chief Credit Officer to coordinate federal credit policies, intervention funds and guarantee schemes.

Onalo further called for mandatory credit reporting by fintech firms, cooperatives and other lenders to strengthen the country’s credit infrastructure and enhance the visibility of borrowers.