By Julius Nsikak
The National Institute of Credit Administration (NICA), Chartered, and the National Credit Guarantee Company (NCGC) have called on financial institutions and stakeholders to work together in promoting a stronger credit culture in Nigeria.
The call was made on Friday at a sensitisation seminar organised by NICA in Lekki, Lagos.
The two-day programme was designed to deepen understanding of credit guarantee operations and management, and to strengthen the relationship between micro, small and medium-sized enterprises (MSMEs), lending institutions and credit guarantee providers.
Speakers at the event outlined strategies to develop a resilient credit system that would support entrepreneurship, stimulate MSME growth, create jobs and improve risk management.
NICA’s Registrar and Chief Executive, Professor Chris Onalo, explained the full cycle of credit guarantee operations, highlighting both challenges and benefits.
He noted that credit offers MSMEs and other groups better access to finance, reduces risk for lenders, and contributes significantly to economic growth.
Speaking on “Understanding the Aims and Objectives of Guarantee Schemes”, Onalo expressed concern about the limited awareness of credit culture and its administration in Nigeria. He stressed the need for a structured approach to credit governance, pointing out that lending institutions operate under frameworks different from those of corporate organisations.
Onalo assured that the Central Bank of Nigeria (CBN) would not allow lending without collateral, which he described as crucial for risk mitigation in unforeseen circumstances. He added that, although the credit guarantee scheme was designed to be inclusive, only properly structured businesses with adequate documentation could benefit.
He commended President Bola Tinubu’s administration for its efforts to formalise and promote a national credit culture, but maintained that structure, transparency and collaboration were essential to achieving this goal. He further urged entrepreneurs to practise financial discipline by paying themselves through their businesses, regardless of scale, to ensure sustainable growth.
Delivering a keynote address, NCGC’s Executive Director of Strategy and Operations, Mrs Tinuola Aigwedo, explained that the company was established to stimulate and support economic activities among MSMEs and local manufacturers.
Represented by a director, Mr Yesufu Ahmed, she spoke on “Strategies for Effective Collaboration in Credit Guarantee Schemes with Targeted Partners.”
Aigwedo clarified that guarantees cover only the principal loan amount, not interest, an important detail for both lenders and borrowers. She also emphasised the need for Nigeria to strengthen its institutional credit systems to support entrepreneurship while effectively managing risk.
She urged Participating Financial Institutions (PFIs) to use guarantees to expand MSME lending responsibly, while maintaining strict credit assessment to prevent moral hazard.
Aigwedo advised entrepreneurs to embrace formal credit opportunities to grow their businesses and to build credit discipline to enhance future access to finance.
She also called on Development Finance Institutions (DFIs) to provide funding and technical support to reinforce the guarantee ecosystem and collaborate on innovations that improve MSME inclusion and resilience.
She assured that NCGC would ensure swift processing without overburdening PFIs, while continuing stakeholder engagement and capacity building.
“Together, MSMEs, PFIs and guarantee providers form a mutually reinforcing ecosystem where access meets opportunity, risk is shared, and inclusive growth is achieved,” she said.
