The Institute of Credit Administration (ICA) has expressed support for the policy direction of the Central Bank of Nigeria (CBN) governor, Mr. Godwin Emefiele.
Specifically, they commended the plan by the CBN governor to introduce a national scoring system.
The Registrar/Chief Executive Officer, ICA, Dr. Chris Onalo said this at a forum organised by the institute in Lagos.
The national scoring system is expected to improve access to information on borrowers and assist lenders to make good credit decisions.
Onalo said: “The plans by the CBN would reduce interest rates and the cost of credit would reduce in terms of legal, management.
“If you have all these structures on ground, it would become very difficult for anyone to give you a loan. Now you can go anywhere to take a credit line when indeed you are not even qualified character wise.
“On a long term bases, it is a good thing on the part of the new central bank governor.”
He also explained that the move would increase investors’ confidence.
Onalo added: “The structures you put in place that holds people to a certain level of decency and honesty are the things investors would consider valuable in making investment decision.
“Because if they see that such things exist in Nigeria, it would bring about more funds into the country.”
Also speaking, the Managing Director, Ugberhen Nigeria Limited, Mr. Goddey Makilolo said: “The new mode of the CBN governor, is in line with best practice in every developed country.”
He further noted that the major advantage was that people or organisations would be unable to duplicate documents.
He also applauded the idea to the create a commercial court saying, “today we know that any case that goes to the courts can drag on for the next four to five years. That is how we have seen jungle justice coming to play in Nigeria.”
He further said: “If as an institution, you are able to retrieve your money within two three months, that would encourage you to want to take debtors to court knowing the case would not drag for a long time and there would be zero tolerance and blacklisting of such debtors.”