Saraki: Collateral Registry, Credit Reporting to Boost MSMEs

Date: 2017-09-07

Senate President, Dr. Abubakar Bukola Saraki has said that the new legislations – Secured Transactions in Movable Assets Act and the Credit Reporting Act – passed by the National Assembly last June and immediately signed into law by then acting President Yemi Osinbajo will support the growth of micro, small and medium sized enterprises (MSMEs) through increased bank lending and reduce bank exposure to loan defaults through pre-examination of credit worthiness for would be borrowers.

Under the law, potential borrowers can now register assets other than land and property as collateral to secure a loan. Also, one can register his/her automobile or other worthy assets.

Securing financing through loans has long been a problem for Nigerian entrepreneurs. Most MSME owners must rely on personal savings or loans from family and friends to launch their business ventures. The new law, also known and the Collateral Registry Act, allows banks to increase lending to MSMEs, while not negatively impacting their balance sheets.

Saraki who hailed the passage and the opportunity for economic and MSME growth the new laws afford Nigerians stated that "this is a win-win situation for our economy and society." "The private sector, the federal government and the National Assembly worked together to create the enabling environment for MSMEs to grow, diversify the economy and increase employment.

"We should all be proud of delivering a law that will allow many people to provide for their families and community," he added.

The Credit Reporting Act allows credit information sharing between credit bureaux and those companies that lend money or extend credit for goods and services.

Under the Credit Reporting Act, companies will have access to the credit history to review whether there is a history of loan defaults or other financial blemishes. This extra layer of protection will serve to reduce lending risks, while preserving credit services to borrowers with good credit histories.

"Combined, the new laws make good economic and business sense" Already bank lending to MSMEs has increased and is expected to grow considerably for the remainder of the year and in 2018", a note from Saraki's Media Office stated.

Saraki further noted: "In both developed and developing economies small business growth is the engine of the economy and employment growth. With a high unemployment in Nigeria, the growth and support for MSMEs is critical.

"The National Assembly will also be looking to see what existing support programmes are working and can be created to help MSMEs' owners to better understand the use of credit, management skills training, mentor relationships, marketing and how to pursue government procurement contracts,"Saraki added.

Source

 

Cloud Tag: What's trending

Click on a word/phrase to read more about it.

Sherif Shagaya     Kwara State Governor     Ndama Al-hassan     Ayo Adeyemi     Mohammed Khadijat Kubura     Suleman Abubakar     Kola Adesina     Muslimah Entrepreneurship Forum     Baboko Primary School     Nigerian Medical Association     Kwara State Sports Commission     Abatemi Usman     Government High School Adeta     Pakata Development Association     Ibikunle Ogunleye     Ilorin International Airport     Nupe     Ganmo Electricity Sub-Station     Toyin Sanusi     Demola Banu     Amina Susa\'a De Ahmed     Halimat Yusuf     Baruten     Ilorin East     Iyeru Grammar School     Saidu Yaro Musa     Hassan Oyeleke     Economic And Financial Crimes Commission     Garuba Alikinla Shittu     Esinrogunjo     Kabir Shagaya     Olupako Of Share     Local Government     Abdulwahab Oba     Babata     Okin Biscuit     Mohammed Haruna     Quarry Royal Valley     CACOVID     Mutawali Of Ilorin     Royal FM     Playing Host     EFCC     Okedare     Fatimoh Lawal     Forgo Battery Company Limited     ITEM 7     Ilesha-Gwanara     Oba-Solagberu     Shuaibu Yaman Abdullahi     Abikan     Kwara State Infrastructure Development Fund     Segun Olawoyin     Hassan A. Saliu     Bilikis Oladimeji     Yusuf Abubakar     Oke-Ero     Ayeyemi Sulaiman     Ali Ahmad     Facemasks     CLAY POT     Sulyman Buhari     Kwara State Council Of Chiefs     HICA     Kayode Oyin-Zubair     Bello Oyedepo     Yusuf Amuda Abubakar     NIRSAL     Senior Special Assistant On Student Affairs     Damilola Yusuf     Tunde Kazeem     Saraki     Aso Ofi     Olateju Lukman     Kale Bayero     MMWG     Muftau Akanbi Oke    

Cloud Tag: What's trending

Click on a word/phrase to read more about it.

Raji AbdulRasaq     Shao     COEASU     NULGE     Salman Jawondo     Kwarareports     Amasa     Alfa Modibo Belgore     AGM Professional Services     Garment Factory     Muslim Stakeholders Of Kwara State     Balogun Ajikobi     Olabode Towoju     Lateef Ademola Olatunji     Okiki     Ibraheem Adeola Katibi     Unilorin     Halidu Danbaba     Gaa Olobi     Alfa Modibbo Belgore     Durbar Festival     Unilorin FM     David Oyedepo     Yomi Adeboye     Saka Adeyemo     Saka Onimago     SSA Youth Engagement     SUBEB     Shettima Of Ilorin     Ganmo Electricity Sub-Station     Abdulquowiyu Olododo     Junior Secondary School Certificate Examinations     Yoonus Kola Olatinwo     Olaiya Zuberu     Aishat Mohammed Lawal     QuickWin     AIT Ilorin     Kwara United     Col. Taiwo     Aliyu Umar     Ahman Pategi     Ajayi Okasanmi     Abdulrazaq Sanni     Aminat Omodara     Kayode Oyin Zubair     IDPU     Joana Nnazua Kolo     International Vocational Centre     Abdullahi G. Mohammad     Societe Generale Bank Of Nigeria     Bank Of Industry     Igbaja     Musa Abdullahi     07039448763     Toyin Falola     Mahmud Ayinla Giwa     Theophilus Oyebiyi     Marufat Oladosu     Mohammed Yahaya Barki     Saraki     Toyin Abdullahi     Ahmed Idris Mohammed     Daud Adeshola     Yusuf Abubakar     Oloriegbe     AGF Abdulrazaq     JMK Construction Company Limited     Vasolar Consortium     Rachael Obisesan     Quran     Memunat Monsuma     Baba Issa     Yusuf Ali     Joseph Alex Offorjama     Olaiya Victor Mobolaji     Ijagbo Health Centre     College Of Health