Insecurity has been identified as a significant barrier to Micro, Small, and Medium Enterprises (MSMEs) accessing bank financing.
Professor Chris Onalo, Registrar and Chief Executive Officer of the National Institute of Credit Administration (NICA), highlighted that historically, the lack of security has hindered MSMEs’ ability to obtain bank loans.
He added that President Bola Tinubu is making concerted efforts to ensure economic stability.
MSMEs, including start-ups and other small business initiatives, typically operate with limited budgets and resources.
“Lack of security has historically hindered MSMEs’ access to bank financing,” he said.
Onalo noted that the National Credit Guarantee Company (NCGC) aims to address the long-standing issue of collateral requirements, adding that the Tinubu administration’s ongoing loan schemes are designed to build resilience against economic shocks.
He emphasized that the consumer credit initiative led by the Nigerian Consumer Credit Corporation (CREDICORP) is expected to boost the economy and improve living standards in Nigeria.
According to him, the ‘cash and carry’ business model hinders economic growth, whereas the ‘buy now, pay later’ approach creates opportunities for small businesses to thrive and expand.
He explained that Tinubu’s credit policy tackles key challenges faced by MSMEs, and that establishing a guarantee system helps absorb bankable risks and enhances financial inclusion.
“Tinubu is quietly and carefully laying a cornerstone for economic stability. A credit economy is essential for sustainable growth and development,” Onalo stated.
He asserted that no developed economy thrives without credit, emphasizing the importance of access to credit for resilience and long-term economic sustainability.
What you should know
- NICA is committed to educating Nigerians on the benefits of credit. According to Onalo, credit access is crucial for the well-being of citizens and overall economic growth.
“This government is restructuring Nigeria’s economy to create a sustainable system that supports hardworking and creative Nigerian entrepreneurs. Once fully implemented, Nigeria will become a thriving economy that will attract Nigerians in the diaspora and black people worldwide,” he added.
- Onalo explained the importance of an economic stabilization system, noting that wealth should be concentrated in the hands of citizens to enhance economic resilience.
- He mentioned that Tinubu identified “consumer credit culture” as a key pillar of his economic growth strategy upon assuming office.
- Current economic hardships are attributed to the failures of past governments, according to Onalo. He criticized the lack of people-centred policies that stifled productivity, entrepreneurship, job creation, and industrialization.
“NICA, as an independent professional entity, acknowledges Tinubu’s economic reforms. Although progress is slow, these reforms are laying the foundation for a resilient economy. A nation with strong credit access, particularly for MSMEs, will experience exponential economic growth,” Onalo stated.
He highlighted the crucial role MSMEs play in national prosperity, as indigenous business owners have the potential to grow into conglomerates, blue-chip companies, and multinational corporations, urging Nigerians to support the government’s efforts, noting that these initiatives will bring prosperity to small businesses and citizens.
He concluded by emphasizing that prioritizing people’s empowerment will drive industrialization, create jobs, improve living standards, and increase government revenue streams.
