At a time the country is caught in the mire of cash crunch with its attendant consequences, Prof. Chris Onalo, a credit economist hold the view and very strongly too that the country needs to adopt credit, which is a more practical approach to economic management.
This paradigm shift becomes necessary to set the country on a smooth pedestal, Prof. Onalo maintained.
According to the don, whose pioneer effort in the area of credit management and administration is widely acclaimed, “Credit has more vital role in our lives. Consumers, businesses, government and the economy benefit more extraordinarilyfrom the role of credit as an economic system. Credit has become an ever-increasing force in the lives of all of us.”
Justifying the need for credit, Prof. Onalao, who sits atop at the Institute of Credit Administration (ICA), said: “Credit has enabled individual Nigerian consumers to experience the happiness and opportunities of our material standard of living. Credit affords consumes the opportunity to buy a car, a home, or go on a vacation without having the full amount in cash at the time of purchase. Without credit, many might not be able to own a car or a home. It’s cheering to note that in our country today, many mortgage institutions are springing up with offer of 5-25 year mortgage credit lines at the point of sale. Furthermore, credit allows us to pay for emergencies when they arise. Credit provides convenience.”
Credit, he stressed, “Is essential in our lives, especially since the world today will not allow us to enjoy life to the fullest on a cash basis. Our wants and needs are many, our resources are few. Credit makes it possible to buy now and pay later when we have the liquidity or the resources to use. Credit can facilitate, but the misuse of credit can debilitate. Credit should be based on needs, not solely wants. But needs alone cannot justify the extension of credit, the one to whom credit is to be extended should have the ability and the character and willingness to comply with the terms of the credit.”
Continuing, he said: “Today, our economy thrives on the existence of credit. The use of credit has become an important part of our economy. Credit is the oil that lubricates economic machinery. The availability of credit is the lifeblood of any economy. And it is hard to imagine any economy without the availability of credit.”