NICA Calls for ₦2trn Injection into Credit Guarantee Company

The National Institute of Credit Administration (NICA), led by Registrar and Chief Executive Officer Prof. Chris Onalo, has called on the Federal Government of Nigeria to inject ₦2 trillion into the National Credit Guarantee Company (NCGC). This initiative aims to expand access to credit for businesses and productive sectors of the economy.

Onalo stated that the recent recapitalization of banks would not automatically lead to economic growth without measures to encourage lending. As of June 2026, private-sector credit was approximately 28 percent of Gross Domestic Product, significantly lower than the 60 to 80 percent typical in emerging economies.

He noted that lending rates between 32 and 35 percent have made formal credit largely inaccessible for businesses in various sectors. Onalo described the current situation as a “credit paradox,” where banks have improved liquidity but are hesitant to lend.

He attributed this reluctance to weaknesses in Nigeria's credit infrastructure and emphasized that a broad-based guarantee would reduce lending risks and promote credit access, particularly for Micro, Small, and Medium Enterprises (MSMEs).