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The regulator of the credit management profession and professional practice in Nigeria is the National Institute of Credit Administration (NICA), chartered.
Details:
- NICA is recognized by the Federal Government under the NICA Act No. 26 of 2022 as the chartered body for credit management in Nigeria.
- It serves as the supervisor and regulator of the credit management profession, responsible for:
- Controlling, supervising, and regulating credit management and credit administration practice in Nigeria
- Setting professional and ethical standards, and awarding professional qualifications in credit management
- Issuing professional practice licenses to individuals and organizations offering debt recovery, credit bureau, credit rating, credit consulting, and other credit-related services
- Preserving, promoting, and protecting integrity, honesty, and ethics in the profession
NICA is often referred to as the “national body of expertise for all matters relating to credit management”.
For context, the Central Bank of Nigeria (CBN) regulates banks and financial institutions generally, but NICA is the specific regulator for the profession of credit management.
Summary of the National Institute of Credit Administration Act No. 26 of 2022
The NICA Act No. 26 of 2022 formally established credit management as a chartered profession in Nigeria and designated the National Institute of Credit Administration (NICA), chartered, as the sole statutory regulator.
Key Provisions & Purpose
1. Establishment & Regulation
- Creates NICA as the chartered body to control, supervise, and regulate the credit management profession and professional practice in Nigeria.
- Criminalizes the practice of credit administration by unlicensed individuals or institutions.
2. Mandate & Functions
- Set and enforce professional and ethical standards for credit management.
- Award professional qualifications and issue practice licenses to individuals and organizations in debt recovery, credit bureau, credit rating, credit consulting, and other credit-related services.
- Preserve, promote, and protect integrity, honesty, and ethics in the profession.
- Influence executive policies of government on credit economic matters and maintain relationships with the legislature and judiciary on credit-related laws.
- Assist federal and state governments in policy formulation to achieve a credible and sustainable credit economy.
3. Economic Role
- The Act positions NICA to help SMEs get better financial standing by improving credit management practices.
- Promotes using credit to increase production, create jobs, and build wealth, supporting national industrialization and business growth.
- Advocates for a culture of integrity, trust, and honesty in business and commercial dealings.
4. Recognition & Impact
- The Federal Government officially recognized credit management as a national profession and affirmed NICA’s regulatory authority under the Act.
- Empowers NICA to influence national economic policies, regulations, and standards, and to create opportunities for members to act as credit economy consultants and advisors.
In short: The Act made NICA the legal regulator of credit management in Nigeria, with authority to license practitioners, set standards, and shape credit policy to support a credit-driven economy.
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