ICA advocates capacity building in credit management
The Institute of Credit Administration (ICA), has advocated capacity building at all level of management cadre in order to address risk management issues.
Speaking at ICR 2015 Management Honours Industry Award, Edwin Idegwu who presented a paper noted that as Nigeria business environment expands and the economy picks up, the imperativeness of capacity building in credit management cannot be over emphasized.
Speaking on the topic “Core Issues Affecting the Nigerian Capital Market”, Idegwu stated that “a well structured programme through the use of diagnostics and capacity building projects as well as knowledge management agenda to develop risk management tools that continues to identify issues and support capacity building in a more complex and hi-tech world is essentially the way forward.
He also noted that “is important that institutions continue to strengthen financial risk management capacities and frameworks, particularly in respect of loan portfolio monitoring, non performing loan management and workouts capacities more particularly because of the complex and structured transaction.
“There is need to enhance the capacity building in credit management by embracing and re-emphasizing the importance of Specialized and institutionalized Credit Risk Management Training Courses to sharpen the knowledge and skills of those saddled with the responsibility to manage credits from starts to finish. It is also important that high moral standards hinged on professionalism and ethical standards should be topmost consideration in selecting managers of credit.”
Noting that government must revisit the re- introduction of commercial courts across the states where cases involving creditors and their customers can be resolved within one week, he further advised President Buhari to set up a National Credit Guarantee Corporation which would serve as a motivating factor and ensure that banks lend directly to the teaming SMEs across the nation without much difficulties and fear of default.
On how to improve the economy, he stated that government “must strengthen our credit market for economic prosperity, especially at a time of impending recession, the effect of which is to improve or reduce unemployment market through real sector lending and foster economic expansion, particularly through adequate credit support for (SMEs)
On his part, ICA President, Mr. Adetunji Oyebanji, expressed dissatisfaction with CBNs directive on publication of names of debtors in newspaper. According to him, the institute views the directive of the CBN and its subsequent implementation by the commercial banks as standing opposite in credit management; an action that is detrimental to the overall economy and capable of chasing potential investors away and diminishing the interest of existing investors.