NICA to Begin Campaign to Enforce Credit Payment to SMEs Before 14 Days
- The National Institute for Credit Administration (NICA) has said that it will begin a campaign to enforce credit payment on time
- The agency said it is unethical for big firms and banks to owe SMEs for long after raising the requisite invoices
- NICA said that it wants to carry the awareness to multinationals and big firms to enforce timely credit payments to SMEs
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The National Institute of Credit Administration Plans to begin a campaign to encourage creditors to pay their debt on time.
The institute urged creditors to make all payments to suppliers and other stakeholders they owe within seven to 14 days.
Source: Original
Onalo adds voice to help SMEs
The Registrar/Chief Executive Officer of NICA, Chris Onalo, said the ‘National Pay Your Bill Month’ campaign aims to help creditors do things right.
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He said:
“The national campaign will create awareness that if you are indebted to anybody,be it a business or an individual, you should repay them within that monthy.
“The institute will emphasise the need for you to appeal to your conscience to pay what you owe the next person, even if you can't pay all, pay something, so that is part of the awareness creation,”
According to reports, Onalo added that the institute is coming up very strongly with support for those who are upcoming, especially the Small and Medium Scale enterprises.
He said that NICA would create awareness among multinationals, blue chip companies, conglomerate companies, and financial institutions, among others, that it is immoral for any of these high-profile business organisations to delay payment of the SMEs' invoices.
Payment delays to SMEs are unethical
Onalo said:
“If SMEs supply something, within seven days to 14 days, you should be able to pay the invoice. Don't subject them to your internal policies; you cannot pay them until after 30 days.
“You know, these people borrowed money to execute the order that you gave to them, and you are now saying to them you will pay them after one month; that is not fair. So, we need to have a national consensus.
“We need the legislation, where the small and medium scale enterprises which form the bulk of the economy, should have the invoice presented and get paid within seven days.”
According to him, this will enable the SMEs to utilise the money for more businesses and increase revenue because they often borrow these funds.
He observed that SMEs have rent to pay, operational running costs, and other expenses, and they should not have their money tied down.
“That is part of the awareness. We plan to make sure that people begin to see the credit economy as the best system that stimulates economic wide growth involving all sectors of the economy,” Onalo said.
NICA advocates credit for made-in-Nigeria goods
Legit.ng reported that the National Institute for Credit Administration (NICA) has canvassed for credit for locally-made products to promote Made in Nigeria goods.
The Registrar and Chief Executive Officer of NICA, Chris Onalo, said access to funds via credit will boost the quality and quantity of locally produced goods that will compete better with foreign goods.
According to Onalo, using credit to produce and sell more products and services will keep Nigeria’s production machines running, creating jobs and wealth for Nigeria.
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Source: Legit.ng
