The National Institute of Credit Administration (NICA) has expressed support for the initiative of the Corporate Affairs Commission (CAC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to register 250,000 nano, micro, and small enterprises free of charge.
Prof. Chris Onalo, Registrar and Chief Executive Officer of NICA, described the move as a transformative step that could position Nigeria as a major business hub in Africa. He said the plan would open up the economy by helping young people, aspiring entrepreneurs, and even retirees gain easier access to loans for business startup and expansion.
According to him, the scheme represents a bold institutional commitment to entrepreneurship. Once fully implemented, it is expected to boost Gross Domestic Product (GDP), cut unemployment, and stimulate nationwide production of goods and services.
Onalo, however, emphasised the need for government intervention to ease the cost of doing business for new entrants. He pointed to multiple taxation, unreliable electricity, and the high cost of securing affordable premises as challenges that could frustrate startups if left unaddressed.
“Registration alone is not enough. Government must help eliminate prohibitive costs, otherwise many new businesses will struggle to survive,” he cautioned.
The NICA boss also urged the CAC to leverage the scheme to strengthen its database for assessing the creditworthiness of registered businesses. He noted that access to finance depends on reliable data such as verified addresses, names of directors, shareholders, next-of-kin information, and national identification numbers.
Onalo stressed that with strong policy support and reliable credit data, the initiative could serve as a catalyst for building a robust credit system, empowering entrepreneurs, and consolidating Nigeria’s position as Africa’s leading business hub.
