Says Nigeria’s Economic Transformation Depends More on Governance than Funding
The Registrar/Chief Executive Officer of the National Institute of Credit Administration (NICA), Chartered, Prof. Chris Onalo, FICA, has called on the Federal Government to establish the Office of the National Chief Credit Officer (NCCO) as part of broader reforms needed to unlock the full potential of Nigeria’s credit-based economy.
Prof. Onalo made the advocacy while delivering a keynote presentation titled “Unlocking the Potentials of Credit-Based Economy: The Governance Expectations” at the 2026 National Corporate Governance Summit jointly hosted by the Financial Reporting Council of Nigeria (FRC), Institute of Directors Centre for Corporate Governance (IoDCCG), Ministry of Finance Incorporated (MOFI), and the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) on Wednesday July 22, 2026 at Oriental Hotel, Lagos.
Addressing an audience comprising corporate directors, regulators, policymakers, governance professionals, financial sector operators, and business executives, Prof. Onalo argued that governance remains the single most critical factor in building a resilient and sustainable credit-based economy.
According to him, credit is fundamentally the monetization of trust, noting that economic growth thrives when promises are kept, obligations are honored, and institutions are empowered to enforce accountability.
“A credit-based economy is not built by capital alone. It is built by governance,” Prof. Onalo declared.
He explained that the governance architecture required to support a thriving credit economy must rest on four pillars: governance of law, governance of people, governance of data, and governance of culture.
Strengthening the Legal Foundation
Prof. Onalo identified the Secured Transactions in Movable Assets (STMA) Act 2017, the Banks and Other Financial Institutions Act (BOFIA) 2020, and the National Institute of Credit Administration Act No. 26 of 2022 as critical legal instruments capable of strengthening Nigeria’s credit system.
He noted that effective implementation of these laws would improve credit accessibility, enhance debt recovery mechanisms, protect lenders’ rights, and deepen investor confidence.
According to him, no economy can successfully operate a credit-based system where credit providers are unable to recover funds or enforce perfected security interests.
Major Challenges Hindering Credit Growth
The NICA Registrar highlighted several structural deficiencies currently limiting the growth of Nigeria’s credit economy.
These include the continued dominance of cash-and-carry transactions, weak credit culture, fragmented and unreliable credit information systems, inadequate financial literacy, lack of professionalized credit management practice, sectoral exclusion from credit access, and the absence of a coordinated national credit policy framework.
He warned that these weaknesses continue to discourage productive lending, increase credit risks, and undermine national economic growth.
NCCO as a Strategic Solution
A major highlight of the presentation was Prof. Onalo’s proposal for the establishment of the Office of the National Chief Credit Officer (NCCO).
He described the proposed office as a national coordinating authority that would harmonize credit policies, integrate data systems, establish uniform standards, and ensure collaboration among all institutions involved in credit administration and intervention programmes.
According to him, Nigeria’s current credit ecosystem operates in silos, resulting in policy duplication, weak coordination, conflicting regulations, and suboptimal outcomes.
“The time is now to make Nigeria a creditworthy nation and credit-ready people,” he stated. Prof. Onalo noted that the NCCO would serve as a single command centre for coordinating credit transaction activities across sectors, thereby improving efficiency, accountability, and national impact.
Corporate Boards Must Take Responsibility
The credit economist further stressed that responsibility for credit quality and portfolio performance ultimately rests with Boards of Directors, Executive Management, and Chartered Credit Professionals.
He urged organizations to ensure that credit decisions are guided by certified credit management professionals and supported by sound governance principles, risk management frameworks, and professional ethics.
According to him, institutions must focus on portfolio quality rather than simply pursuing higher lending or credit-sale volumes.
“Credit failure is rarely a market problem; it is often a governance problem,” he emphasized.
Building a National Culture of Credit Discipline
Prof. Onalo also called for deliberate efforts to build a national culture of credit responsibility, ethics, and accountability.
He advocated widespread credit education, improved financial literacy, ethical debt recovery practices, and stronger consequences for willful credit default.
He argued that sustainable access to credit can only be achieved when citizens and organizations understand that credit is a contractual obligation rather than an entitlement.
NICA Extends Invitation to Corporate Directors
In a special message to corporate directors and board members, Prof. Onalo encouraged governance leaders to embrace professional credit management and become Fellows of NICA Chartered.
He noted that directors occupy strategic positions in approving and overseeing credit-related decisions and therefore have a responsibility to strengthen credit governance within their organizations.
Governance Will Unlock Capital
Concluding his presentation, Prof. Onalo maintained that Nigeria’s quest for economic growth, financial inclusion, and private-sector expansion will be significantly accelerated through stronger credit governance.
“Unlocking the potentials of credit-based economy is not a funding question. It is a governance question. Get governance right, and capital will flow,” he said.
His presentation reinforced the growing consensus among industry stakeholders that effective credit governance, professional credit management practice, and institutional coordination are indispensable to building a resilient and prosperous Nigerian economy.
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