The Chief Justice of Nigeria (CJN), Justice Tanko Muhammad, on Tuesday, said Nigeria’s financial sector and the entire economy stand to benefit from the quick dispensation of justice in commercial or business transactions.
The CJN, who spoke at the World Bank/CBN Specialised Two-day Virtual Workshop For Judicial Officers On Secured Transactions In Movable Asset And Credit Reporting Reforms In Nigeria, said the importance of the judiciary to the financial sector cannot be over-emphasised.
The CJN said credit reporting reforms in Nigeria require special attention from the judiciary adding also that credit reporting reforms are a critical position in the economy given that movable assets are involved.
He said small businesses in the country require access to credit to thrive and the rights of the relevant parties to a transaction must be protected.
The CJN noted that potential investors often hinge their decisions to come to Nigeria on the enforceability of their rights in any commercial venture.
”Therefore, Courts must be versed with credit transactions principles, especially with the passage of the Secured Transactions in Moveable Assets (STMA) Act and Credit Reporting Act, 2017. This means that the judiciary needs to be strengthened to help the financial sector protect credit transactions,” he said.
Justice Muhammad said the financial sector and the entire economy stand to benefit from the quick dispensation of justice in commercial or business transactions, saying that, “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.
“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.”
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The Administrator of the National Judicial Institute (NJI), Justice Roseline Bozimo, in her remarks said the workshop is in line with the statutory mandate of the institute to organise courses, workshops and conferences for the continuing judicial education of Judicial Officers.
She said the principal objective of moveable assets financing laws globally is to contribute to the sustainability and stability of the financial system of every economy while protecting investors and financiers alike.
Justice Bozimo said, STMA Act, 2017 was enacted to ultimately facilitate easy access to credit facilities by micro, small and medium scale enterprises.
“The introduction of the Act into the Nigerian legal system is a timely development that will pave the way for creditors to extend credit for the development of Micro, Small and Medium Scale Enterprises,” the NJI boss stated.
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