Thursday, 24th April 2025.

CreditEconomy News Interview

…Over 500,000 people read our news story, number still counting

In unequivocal terms, this was the Federal Government’s proclamation on 22^nd October, 2024:

• “Credit Management a National Profession;

• Qualifications in Credit Management nationally recognized; and

• The National Institute of Credit Administration (NICA) chartered, a regulator and supervisor of the Credit Management Profession in Nigeria, in full accord with NICA Act No. 26 of 2022” – so declared. click here

The proclamation of Credit Management as a National Profession by the Federal Government of Nigeria is a significant development that will have far-reaching impacts on not only the country’s economy, but also Credit Management Professionals, and credit-granting industry.

The light for greater economic prosperity in Nigeria shone on October 22, 2024 when a proclamation was made by the Vice President Sen. Kashim Shettima, on the occasion of the National Credit Managers Conference held in Lagos, by the National Institute of Credit Administration (NICA) chartered. This singular act of the Federal Government is a tonic in the vein of the nation’s professional credit management, geared towards minimizing bad debts through effective credit risk assessment and policy implementation, thereby reducing the financial burden on credit grantors in the entire credit ecosystem.

“As it is in other developed economies, businesses in Nigeria going-forward are set to benefit from professional credit management practices which aims at reducing the risk of credit defaults, improving financial stability and promoting individuals and corporate creditworthiness culture as contained in the Presidential Economic Policy Focus of President Bola Ahmed Tinubu.”

With a standardized Credit Management Profession, credit grantors/providers in the economy will now be more confident in extending credit to individuals and businesses, which will potentially boost economic growth and as well, set a tone to the effect that membership of NICA is a validation and authentication that imbues a person with the culture of creditworthiness and an attitude of obedience to credit transactions, potentially leading to being qualified to participate in the credit economy marketplace.

The managers of credit being the assessors of creditworthiness, who are referred to as Credit Management Professionals, can in this case, now obtain nationally recongnised certifications and recognition, which will enhance their career prospects and credibility in their occupational trajectory.

The proclamation entails that the National Institute of Credit Administration (NICA) chartered, is to establish an apex national professional framework that will standardize practices and set guidelines for credit management, promoting consistency and excellence throughout the credit market landscape in the country, creating membership networking opportunities for training, and knowledge sharing.

Super important in the National Proclamation is the side of regulatory oversight. As NICA is empowered by law to control, supervise, and regulate the Credit Management Profession in Nigeria; there will be a very strong commitment for adherence to standards and best practices. There is also a responsibility of increased accountability on professional credit managers, credit using entrepreneurs and individuals who are expected to adhere to Code of Ethics, Bylaws, Practice Standards, and Credit Transaction Integrity Principles enacted by NICA to enhance accountability and transparency. The power, responsibility, and authority vested in the Institute’s Act No. 26 of 2022 is now translated into reality.

NICA’s position as the apex body for Credit Management in Nigeria plays a crucial role in promoting the Credit Management Profession in not only Nigeria, but also Africa as a whole.

NICA is totally in the saddle for the establishment and enforcement of professional standards for Credit Management practices in Nigeria, ensuring that credit management practitioners, credit using businesses, credit market regulators and consumer credit community, all adhere to best practices as they are recognized as critical stakeholders in the economy.

With a vital role in promoting economic growth and stability, NICA is committed to working with tertiary educational institutions in the country, with a view to developing a curricula at degree levels that incorporates credit management principles and practices, making increased investment in training and capacity building for the present and future Credit Management Professionals, as well as enhancing their skills and knowledge.

To achieve these novel initiatives, NICA needs funding support to resolutely promote Credit Management and economy in Nigeria, through activities such as training programmes and research. Critical credit market stakeholders, including private sector organizations, international development agencies, and federal and state government are beckoned to support NICA for the development and implementation of credit management initiatives in Nigeria and African continent.