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.

Ghali Muhammed     Salihu Alhaji Musa     Plat Technologies Limited     Mufti Of Ilorin     Harmony Holdings     Isiaka Yusuf     Hassan Oyeleke     Shuaib Abdulkadir     Azeez Salawu     Maryam Ado Bayero     Babs Iwarere     Eruku     Jare Olatundun     Kwabes     Olam Food Ingredients     Umar Gunu     Temitope Ogunbanke     Yahya Mohammed     Okin Group     Yemi Sanni     Baba Adini Of Kwara State     John Mayokun Dada     Kwara State Governor     Opaleke Bukola Iyabo     Okiki     Olateju Lukman     Abdulganiyu Salahudeen     Royal FM     Irepodun     Fareedah Dankaka     HYPPADEC     Abdulrasaq Alaro     Abdullahi Imam Abdullahi     Computer Based Test     Bello Taoheed Abubakar     Ganmo Power Sub-Station     Quareeb     Omotoso Musa     Katibi Ibraheem Adeola     Erin-ile     Hydroelectric Power Producing Areas Development Commission     Illyasu Abdullahi     Hameed Oladipupo Ali     Olatunde Jare     Funmilayo Oniwa     Surajudeen Akanbi     Oloje     Imam Gambari     Monthly Sanitation Exercise     Ilorin Water Reticulation     Aminu Adisa Logun     Nupe     Mohammed Haruna     LEAH Charity Foundation     Obuh     Ayinde Oyepitan     Ibrahim Labaika     Madawaki Of Ilorin     Abdulraufu Mustapha     Shonga     Assayomo     Moses Adekanye     Chief Imam Of Ilorin     Kayode Issa     GRA     Muyideen Ajani Bello     Maigidasanma     Bamidele Adegoke     Sheikh Hamzat Yusuf Ariyibi     Abdulrauf Aliyu     General Tunde Idiagbon International Airport     Olohungbebe     SWAN     General Hospital, Offa     Fola Consultant     Charcoal     Oladimeji Thompson    

Cloud Tag: What's trending

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

Aliyu Kora-Sabi     Olokoba Abdullahi Ayinla     Centre For Digital Economy     Toyin Falola     Coronavirus     Kolo     Senate     Umar Yakubu Jaja     Florence Saraki     Raji AbdulRasaq     Halidu Danbaba     Habeeb Abdullahi Al-Ilory     Abdullahi Biffo     Sam Onile     Elerin Of Adanla     Adesoye College     Fatai Olodo     Igbomina     Okedare     Trader Moni     Bolaji Nagode     April 11     Elerin Of Erin-Ile     Ilorin East     Turaki     Tafida Of Ilorin     Kwara State Printing And Publishing Corporation     Jaiz Bank     Apata Ajele Secondary School     Kunle Akogun     Arinola Fatimoh Lawal     Ambassador Kayode Laro     Ibrahim Sulu Gambari     Kunle Okeowo     Ahmad Olanrewaju Belgore     V.O. Abioye     Ibrahim Labaika     Ahmed Shuaib Buranga     Rotimi Oyedepo     Sabi     Kwara Volleyball Association     Charcoal     Abdulkadir Bolakale Sakariyah     Saka Balikis Kehinde     Sulyman Tejidini     Ghali Alaaya     Bello Oyebanji     General Hospital, Offa     Sulyman Atolagbe Alege     Revenue Court     Afin Descendants Union Of Odo-Owa     Ridwan Agboola     Abdulrazaq Aiyelabegan     Bond     Onilu     Hajj     Ibrahim Taiwo     Abdulkadir Remi Hawawu     Bolaji Abdullahi     Col. Ibrahim Taiwo     Onilorin Of Ilorin     Ahmed Idris Mohammed     Olatomiwa Williams     Sarah Alade     Saad Omo\'ya     Plat Technologies     IESA     Bilikis Oladimeji     Mary Arinde     Mohammed Katsina Ahmed     Abdulkadir Akanbi-Oke     AbdulKareem Yusuf Danhawa     Kola Adesina     United Nigeria Airline     Wahab Olasupo Egbewole     Olumide Daniel Ibitoye     Bolakale Saka