The National Institute of Credit Administration (NICA) has called for the immediate capitalisation of the Nigerian Credit Guarantee Company (NCGC) with two trillion naira.

The Registrar and Chief Executive Officer of NICA, Prof.

Onalo said stronger banks from the recent recapitalisation would not translate into economic growth without deliberate measures to expand credit to productive sectors.

He said private sector credit stood at 28 per cent of the Gross Domestic Product as of June 2026, far below the 60 per cent to 80 per cent average recorded in emerging economies.

According to him, high lending rates of between 32 per cent and 35 per cent have priced key sectors out of formal credit.

He listed manufacturing, agriculture, housing and education among sectors struggling to access affordable financing.

He said banks had become increasingly risk averse in spite of improved liquidity following the recapitalisation exercise.

He attributed the situation to weak credit infrastructure, limited credit bureau coverage, weak collateral enforcement and slow judicial recovery.

Onalo warned that the credit gap was pushing millions of Nigerians toward informal lenders and digital loan platforms.

He said this could worsen household debt and weaken the capital base of small businesses.

The NICA boss described the situation as a “credit paradox”, where funds existed within the banking system, but were not sufficiently circulating in the productive economy.

He said the government must, therefore, create mechanisms to de-risk lending and encourage banks to finance businesses capable of creating jobs and expanding production. 

Onalo urged the Federal Government to empower the NCGC with two trillion naira to provide broad-based guarantees for lending to micro, small and medium enterprises.

 He said the guarantee scheme would serve as a bridge between stronger banks and increased financing for businesses.

 “Given the recent robust bank recapitalisation, the Federal Government should immediately capitalise the Nigerian Credit Guarantee Company (NCGC) with N2 Trillion. 

“This broad-based guarantee will de-risk lending, unlock bank balance sheets, and upscale credit to MSMEs nationwide. It is the bridge between strong banks and a strong economy,” he said.

Onalo also called for single-digit intervention funds for agriculture, manufacturing, housing and the creative economy through relevant government institutions.

He advised the government to establish an Office of the National Chief Credit Officer to coordinate federal credit policies, intervention funds and guarantee programmes.

Onalo also recommended mandatory credit reporting by fintechs, cooperatives and other lenders to strengthen Nigeria’s credit infrastructure.

He called for the full digitisation of the National Collateral Registry to reduce lending risks and improve access to credit.

He insisted on regulation of digital lenders to protect borrowers from predatory interest rates and unethical debt recovery practices.

Onalo also proposed reforms allowing pension and insurance funds to invest more in corporate bonds and infrastructure debt.

He urged all 36 states to establish Credit Access Departments to work with financial institutions and the NCGC to fund grassroots enterprises.

“Bank recapitalisation has given us stronger banks. What Nigeria needs now is coordinated, guaranteed and disciplined credit,” he said.

He added that such measures would enable credit to become a catalyst for enterprise, employment and sustainable economic growth.

Onalo said NICA was ready to provide policy support, technical guidance and executive training for implementing the proposed reforms. (NAN)

From Ene Asuquo, Calabar

A fire outbreak weekend occurred at the SPAR Calabar Mall in Cross River State, biggest shopping Mall in the state following a reported explosion within the shopping complex, and a section of the mall was engulfed in towering plumes of dark smoke and fierce flames disrupting activities at the complex

According to information from the scene, the fire was preceded by what was described as a minor gas or fuel explosion, which reportedly sparked the subsequent blaze.

Images from the scene showed flames consuming a section of the mall, while thick smoke billowed from the upper part of the building.

The incident caused panic among people within and around the shopping complex, as attention shifted to containing the fire and ensuring the safety of those in the vicinity.

The extent of damage to shops, goods and other property could not be immediately ascertained as of the time of filing this report. Similarly, information on possible casualties was not immediately available.

The circumstances surrounding the reported explosion and the subsequent fire are expected to be established by relevant emergency and safety authorities following a detailed assessment of the scene.

By Tony Obiechina, Abuja

The Office of the Tax Ombud and the Oil and Gas Free Zones Authority (OGFZA) have agreed to work together to resolve tax and fee disputes affecting investors, in a move both agencies say will help draw more foreign direct investment into Nigeria’s oil and gas free zones.

The agreement was announced recently when the Tax Ombud/Chief Executive, Dr.

“I am very much aware that OGFZA regulates and coordinates activities in the zones, grants permits and licences, administers incentives, and resolves disputes among stakeholders,” Dr.

“The Office of the Tax Ombud complements these functions by providing an independent channel for reviewing and resolving complaints relating to taxes, levies, regulatory fees, customs duties and excise matters.”

He listed possible areas of cooperation between the two agencies as taxpayer complaint resolution, clarification of tax incentives, review of systemic complaints, and promotion of transparency and accountability.

According to a statement made available by the Chief Press Secretary to the Tax Ombud, Chukwudi Achife, Nwabueze added that such efforts would encourage voluntary tax compliance and help raise Nigeria’s tax-to-GDP ratio, a goal he linked to the Renewed Hope Agenda of President Bola Ahmed Tinubu.

In his response, OGFZA’s Managing Director/Chief Executive Officer, Alhaji Usman Bamanga Jada, said investors in the oil and gas free zones had already benefited from incentives, tax exemptions and customs duty concessions put in place by the Federal Government to attract sustainable FDI, drive private-sector infrastructure development and create jobs.

He said the proposed collaboration with the Tax Ombud’s office came at the right time, noting that it would strengthen investor confidence and support business activity across the special economic zones OGFZA oversees nationwide.

To move the partnership forward, both agencies have named liaison officers to coordinate the relationship and ensure its objectives are met within the shortest possible time.