The National Institute of Credit Administration (NICA) has cautioned Board Credit Committees of credit-granting organisations in Nigeria against complacency in managing financial risks.
In a statement issued in Lagos on Friday, NICA’s Registrar and Chief Executive Officer, Professor Chris Onalo, stressed the importance of vigilance, expertise, and proactive engagement in credit risk management.
“As Nigeria fosters a credit-driven economy to empower job creation, entrepreneurship, and improved living standards, credit governance becomes crucial. Poor performance by Board Credit Committees threatens financial stability and organisational sustainability,” Onalo warned.
He urged Boards of Directors to conduct regular assessments of their Credit Committees to identify areas requiring improvement and ensure compliance with regulatory frameworks.
“Committees must operate within clear and well-defined terms of reference to ensure effective credit oversight. Regular training, continuous capacity building, and transparent communication between committees and top management are essential,” he added.
Onalo further called for engaging qualified professionals in credit committees, advocating for frequent meetings to review portfolios, assess risks, and implement corrective measures.
