273,435 borrowers access over N2trn through collateral registry ― Emefiele

Since the National Collateral Registry (NCR) became operational, a total of 694 financial institutions have registered on its portal.

At the opening ceremony of the virtual workshop for judicial officers on secured transactions in movable asset and credit reporting reforms in Nigeria, on Tuesday, Governor of Central Bank of Nigeria (CBN), Godwin Emefiele, said the registration was the first step towards buy-in to the Registry’s operations.

According to him, based on a total of 113,153 financing statements registered on the registry in respect of movable assets offered as collateral, lending banks availed credit amounting to ₦1.80 trillion, US$1.36 billion and €10.92 million, to 273,435 borrowers, comprising: 262,904 individuals; 1,421 large, 4,260 medium, 1,433 micro and 3,417 small businesses.

He explained that since “a lending relationship is based on trust and it is our belief that lenders will respond positively to the yearnings of MSMEs for greater access to finance, given the assurance that their legitimate interests will be protected under the enabling laws of the land.

“To this end, it is pertinent that we solicit, and get, the full support of the judiciary and law enforcement agencies towards providing a robust and resilient financial infrastructure that will deepen credit delivery to our MSMEs.”

He noted that the National Bureau of Statistics indicates that the over 41.5 million MSMEs remain central to the achievement of these macroeconomic objectives, as they sustain about 60 million people in employment and contribute 49.8 and 7.6 per cent of gross domestic product and export, respectively.

As I have earlier stated, under financial infrastructure, the NCR has been operational since 2015 to allow financial institutions to register their priority interest in movable assets obtained as collateral for loans.

In his address to the workshop, Chief Justice of the Federation, Ibrahim Tanko Muhammed, said the importance of the judiciary to the financial sector cannot be over-emphasised.

“As the access to credit is necessary for the economic development of Nigeria, it behoves the judiciary to protect parties to a transaction and ensure fair and ethical standards.

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“The purpose of both Laws is to facilitate and promote access to credit and enhance risk management in credit transactions.

“The protection of the rights of parties in a credit transaction would promote responsibility in the market and encourage responsible borrowing.”

Muhammed said courts must be versed with credit transactions principles, especially with the passage of the STMA Act and Credit Reporting Act, 2017.

“This means that there is a need for the judiciary to be strengthened to help the financial sector protect credit transactions.”

NIGERIAN TRIBUNE