Nigeria’s long-standing challenge of financial exclusion may finally be easing as recent credit reforms begin to lay the groundwork for a more inclusive, consumption-driven economy, economic experts have said.
They noted that the introduction of structured consumer credit and business credit guarantees is expanding access to finance for households and small businesses previously locked out of the formal financial system. However, they warn that the long-term success of these reforms will depend on sustained funding, policy consistency, and widespread public awareness.
According to the credit management experts, without adequate capitalisation and broad-based enlightenment on how the new credit framework operates, the reforms may fall short of delivering the scale of economic inclusion and growth envisioned.
Registrar/Chief Executive Officer National Institute of Credit Administration (NICA)
The Registrar/Chief Executive Officer of the National Institute of Credit Administration (NICA), chartered, Prof. Chris Onalo, has long advocated the adoption of credit as a national economic culture, often in the face of policy resistance and short-term economic thinking.
Onalo, Nigeria’s foremost credit economist noted that for years, discussions around economic development focused more on immediate gains rather than building durable financial structures capable of supporting long-term growth. “Nigeria must intentionally and methodically build the most resilient economic ecosystems in the African continent”, he noted.
Unfortunately, he said Nigeria has not been very receptive to new ideas. Too often, personal progress is prioritised over collective progress, and this deepens inequality. He explained that a major shift occurred when President Bola Tinubu publicly committed to deploying credit as a national economic instrument to expand opportunity and curb corruption. No doubt, this is a huge undertaken.
“That was when it became clear that the tide was turning,” Onalo said.
Despite years of strong profitability in the banking and other juicy sectors, he observed that millions of Nigerians have remained excluded from credit, limiting their ability to start businesses, acquire homes, or invest in productive assets.
He described the situation as financial and blue-ship institutions “sitting on gold mines but refusing to lend,” a practice he said suppresses consumption, slows economic growth, and restricts social mobility.
According to the Professor of credit management, the establishment of Nigerian Consumer Credit Corporation (CrediCorp) and the National Credit Guarantee Company (NCGC) represents the first concrete steps toward dismantling structural barriers to credit access in Nigeria. “These institutions are the pillars of a modern, credit-driven economy,” Onalo said.
Under the emerging consumer credit framework, workers can now acquire household items and productive assets while spreading payments over time. Onalo said this development has the potential to stimulate demand, expand production, and create jobs across multiple sectors.
However, he stressed that the reforms would deliver limited results without stronger capital backing. With ₦100 billion, the impact will be marginal. For an economy of Nigeria’s size, that is a drop of water. Government must scale this to at least ₦1 trillion to meaningfully drive industrial growth, job creation, and making pathway to wealth accessible to Nigerians at all cadre.
Professor Biodun Adedipe, FICA, FCIB, F.CLoD, FERP, FICBC Professor of Practice, James Hope University
An economist and Chief Consultant at B. Adedipe Associates Ltd., the erudite Prof. Biodun Adedipe, said early indicators show that the reforms are beginning to yield positive outcomes, including a reduction in borrowing costs of about one-third compared with traditional commercial bank loans.
He added that the framework will also support local manufacturing by prioritising goods with high local content, while complementary policies such as tax relief and the student loan scheme will strengthen household finances.
“These reforms work best as a system. Credit expands access, tax relief boosts purchasing power, and student loans free up household income,” Adedipe said.
Also speaking, Mrs. Adeola Fadoro, Managing Director of Twinsmeekleen Ventures, identified low public awareness as a major constraint to the success of credit economy reforms.
She called for intensified public education to help Nigerians better understand the credit economy and the roles of institutions such as the CrediCorp and NCGC.
According to her, widespread enlightenment is critical to building trust, encouraging participation, and ensuring that the economic reforms achieve their intended impact on growth and inclusion.
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