National Institute of Credit Administration (NICA) has warned its Board Credit Committee against complacency in the discharge of its responsibilities, describing it as a luxury they could not afford, adding that as the guardian of the organisation’s credit risk management framework, its vigilance, expertise and proactive engagement are essential to ensuring the integrity of credit processes and protection of organisation’s assets.

The warning is contained in a statement signed by the Registrar/Chief Executive Officer of NICA, Prof Chris Onalo.

The statement reads: “As Nigeria democratise the economy to reflect credit culture in order to empower various economic growth components for job creation, entrepreneurship and improved living standards of the people, the stakes in credit management governance are high, and the consequences of inaction or indifference are severe.”

“The Board Credit Committee members are expected to demonstrate unrelenting passion for upholding the highest standards of credit risk management in their oversight functions.”

The warning, according to the statement, followed NICA’s observation of an alarming trend of poor performance of the board, which posed a significant threat to financial stability and organisational sustainability.

It expressed the need to conduct thorough reviews of the committee’s performance to identify areas of improvement and implement corrective measures to ensure effective credit risk management and compliance with regulatory requirements.

To optimally discharge their responsibilities, the institute advocated continuous training and development of committee members, towards ensuring possession of necessary skills and knowledge to perform their duties effectively.