As the premier federal professional body for the control, supervision, and regulation of the credit management profession in Nigeria, the National Institute of Credit Administration (NICA) Chartered, which is committed to promoting best practices and ethics in the credit business operations in the country, has urged all business entities and corporations to abide by the terms of their obligations in credit transactions.

This was made known in a statement on Friday by the Registrar/Chief Executive Officer of NICA, Prof. Chris Onalo. He said as complaint mounts for respecting obligations in virtually all sectors where credit is granted or provided, NICA is urging business organisations in Nigeria to respect their obligations in credit business.

“Wherever credit is granted and received – be it trade credit, corporate credit, financial credit or consumer credit, it is required that honouring payment obligations on time constitute integrity in the business credit system. Other essential requirements for granting or receiving any form of business or financial creditline include, maintaining accurate and transparent credit records, avoiding unfair or deceptive credit practices, and cooperating with credit bureaus and other credit information providers to ensure an all-time healthy credit business operating environment for both local and foreign business transactions.

“The ongoing efforts of Nigeria’s Federal Government to replace cash-based economic transactions with a virile credit ecosystem can only be well appreciated if credit cultured mentality is inculcated in the nation’s national values.”

Failure to respect obligations in any form of credit business can result in damage of business reputation and creditworthiness, financial losses and penalties, regulatory sanctions, enforcement actions, and loss of business opportunities and partnerships.”

He added that paying one’s business debt or consumer debt is a responsibility, not an option. Onalo added: “Don’t let debt weigh you down – pay it off and start fresh; take control of your finances and pay your debt on time. Doing so means you have a good economic character, capable of growing and expanding your business, as well as improving your living standard with applicable sense of tranquility, patriotism and nationalism.

“NICA is committed to promoting best practices and ethics in credit management. We will continue to provide training and education on credit management, promote transparency and accountability in credit business, and maintenance of advocacy for policies and regulations that support responsible credit business transaction practices and management across national credit ecosystem.

“We urge all business organisations and well-meaning individuals to join NICA in promoting best practices and ethics in credit management in all industries in Nigeria. Let us work together to build a credit market economy that is fair, transparent, and responsible.”