No economy grows without the use of credit, and there is no example of any advanced society without the use of credit. Credit at whatever level, if not properly managed could spell doom for an economy.
In order to foster development of credit management in Nigeria and Africa, and to ensure that standards are set based on the best practices in professional and ethical regulations, as well as provision of services geared toward enhancing skills and capacity building of those involved in credit functions, the Institute of Credit Administration (ICA) was established as a non-profit in 1992 and got its legal status as a body limited by guarantee under the law of Nigeria in year 2002. With currently over 5,000 members working in commerce, industry, finance, banking and governments, ICA is Africa’s largest body of credit management specialists.
In Nigeria, businesses extend credit to each other, but the successful management of these credits has been hampered, abused to a large extent following lack of standards, unethical conducts, insider abuse, sharp practices, and skills gap amongst the present day credit managers. There is also systemic absence of purposeful regulation and protection of relationship between debtor and creditor resulting to overbearing credits extortion which needs to be addressed for a healthy credit market economy.
In other countries of the world where economy is driven by credit system, national institutes for credit are in place to regulate, set standards, moderate ethical conducts and build capacity of the people involved in managing, controlling, monitoring and recovering credits at all levels of commercial or business activities.
The incidence that triggered the on-going world economic and financial meltdown stemmed largely from improper attention paid to sound and disciplined credit management, thus re-enforcing the need for every country to provide necessary safeguards and infrastructure to protect her credit market economy.
From the foregoing, there is no doubt that the establishment of Nigeria’s national body…the Institute of Credit Administration for the control, regulation, standardization and capacity building in credit management is not only timely, but long overdue.
The Institute of Credit Administration is extremely committed to bring changes to the face and habit of credit business at all levels in Nigeria and influence structures of risk measurement to protect the item on the balance sheet called “accounts receivable”.
The Institute also influences re-payment arrangements arising from credit business transactions through optimization of processes associated with sound and responsible credit management system, thus assisting to assess the tasks faced by those involved in the administration and management of credit functions with a view to promoting best practice and exchange of credit information for a healthy credit market operation.
As we are all aware, no economy can grow to the point of providing the desired massive jobs and wealth creation without the use of credit extension at all levels of industrial and commercial activities. But credit business extended or granted under a sloppy arrangement is an evil worse than an economy driven by cash-and-carry mentality.
The current state of the world economy, and its effect particularly on Nigeria, and coupled with our age-long highly abused credit system, suggests that time is now for Nigeria to establish a system that will moderate well managed, well structured and professionally oriented credit business system, capable of positioning Nigeria for the attainment of her vision of becoming one of the top 20 economies of the world in the year 2020.
With a lot of institutions present in today’s Nigerian economy which provide or extend one form of credit or the other to their customers, there is need for a body empowered by Law to regulate the activities of those who grant credit as well as those who manage credit at every level of commercial transactions.
It is against this backdrop, that a Bill to make the Institute of Credit Administration a chartered body was passed by the Federal House of Representatives on October 20, 2009.

The Institute of Credit Administration’s main objectives include:

1. Serving as a national body of experts for all matters relating to credit management.
2. Overseeing the implementation and monitoring of national standards for credit management practice.
3. Setting professional standards and awarding professional qualifications in credit management.
4. Testing and assessing those who wish to become members.
5. Enhancing, promoting and protecting the interest of business credit providers or guarantors.
6. Enacting binding professional code of ethics on credit managers and their executives.
7. Consulting with and making recommendations to the government, regulatory bodies, trade associations, the academic community and other professional bodies on all matters relating to credit management.
8. Providing a range of services and programmes aimed at keeping Nigerian credit managers and their executives up-to-date by developing their professional skills, elevating their status and inculcating ethics in their service of managing credit for their employers.
9. Developing and maintaining sound and industry-driven credit management and administration educational programmes in Nigeria.
10. Maintaining a high-level of discipline and ethics among its members.
11. Setting standards and proving a code of ethics for those engaged or who should engage in the practice of carrying out the functions of credit management and administration, including all the elements of credit and business information decision tools and the appraisal processes involved in credit management.
12. Setting standards and sanctioning any unauthorized organization or individual who wishes to introduce any credit product into the market, having to do with credit extension or credit mitigation to individual members of the public or corporate organizations. In this case, the Institute shall be the only national body vested with power to set conditions and standards for corporate bodies and individuals who desire to float or introduce any product into the market with intention to either extend credit, facilitate credit, mitigate credit or guarantee credit.
13. Determining and establishing national standards of knowledge, proficiency and achievement in credit management and administration, and providing a means for recognition of those who attain the standards from time to time, by the Institute.
14. Co-operating with and accredit colleges and university schools of business administration and other related professional schools and associations to develop programmes of study in credit management, credit administration and credit risk measurement.
15. Determining what standards of knowledge and skills are to be attained by persons seeking to become members of the profession and improving those standards, from time to time, as circumstances may permit.
16. Securing, in accordance with the provisions of this Act, the establishment and maintenance of a register of Fellows, Members, Associates, Honorary Fellows and retired members of the profession from time to time.
17. Encouraging and advancing education, practical training and research into the profession.

Conducting examinations into the profession and award certificates or diplomas to successful candidates as appropriate, and for such purposes the Institute shall prescribe fees to be paid in respect thereof.