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.

Ibrahim Jawondo     Kayode Laro     Monkey Pox     Musbau A. Akanji     Funmilayo Isiaka Oniwa     TVC Female National Debate     Olumide Daniel Ibitoye     Vishvas KOZ Tractors     Bashiru Makama     Eruku     Sherif Sagaya     Ibrahim Sulu Gambari     Ishola Moses Abiodun     Christian Association Of Nigeria     Jaigbade Alao     KWASIEC     Afolasade Opeyemi Kemi     Ibrahim Bio     Hijab     Abiodun Musa Aibinu     Erubu     Moro     Muhammad Ghali Alaaya     Mohammed Saidu     Pategi     KWASAA     Shonga Farm Project     Government High School (GHS), Adeta     Abdulrasheed Na\'Allah     Tuesday Assayomo     Coronavirus     AbdulGafar Tosho     Gafaru Olayiwola Olorisade     Hassan A. Saliu     Aisha Ahman-Pategi     Ilorin Like-Minds     Edu     Government House     Kwara University Of Education     Lukman Adeloyin     Suleiman Idris     Abdulbaqi Jimoh     Aisha Abodunrin Ibrahim     Afolayan     Ilorin Emirate Staff Association     Olugbense     Abdulkadir Akanbi-Oke     Omoniyi     IQRA College     Raliat Elelu-Habeeb     Tunji Folami     Mary Arinde     Ambassador Kayode Laro     Alliance For Democracy     Sobi     AbdulFatai Adeniyi Dan-Kazeem     Ezekiel Yissa Benjamin     Nnazua     Umar Saro     Amule     Garba Dogo     Titus Suberu-Ajibola     Yahaya Jibril Usman     Mamman Saba Jibril     Adebayo Mohammed Kamaldeen     Wasiu Odewale     Bola Magaji     Shettima Of Ilorin     Ubandawaki     Onilorin Of Ilorin     Saheed Popoola     Olomu     Ile Arugbo     Wole Oke     Tricycle Owners Association Of Nigeria     Flights To Ilorin     Malete    

Cloud Tag: What's trending

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

MalHub     Aliyu Kora Sabi     Sambo Murtala     Amos Justus Sayo     Afolayan     Kwara Liberation Group     Muhammed Taofeeq Abdulrazaq     TIC     Baba Idris     Olaitan Buraimoh     NIRSAL     Association Of Kwara State Online Media Practitioners     Neo Mundo Ltd     ER-KANG Mining Nigeria Company Limited     Abdullateef Abdussalam     Bureau Of Lands     Centre For Digital Economy     Gaa Olobi     Hajj     Muslim Cementary     Ilorin Like-Minds     Salihu S. Yaru     Col. Ibrahim Taiwo     Elections     Onilupeju Of Ilupeju     Onilu     Ilorin Central Mosque     Mubarak Oladosu     Labaeka     Halimah Perogi     Elerin Of Adanla Irese     Suleiman Idris     Opaleke Bukola Iyabo     Council Of The Wise     Atunwa     Olubukola Kifayat Adedeji     Suraj Tunji Oyewale     Odogun Olushola Gabriel     Onilorin Of Ilorin     Abdulmajeed Wahab     Afonja Descendants Union     Ahmed Bayero     Elerin Of Adanla     Egbewole     Bayo Ajia     Jimoh Bashir     Ridwan Agboola     Osi     Owu Fall     08001000100     Abdulmumini AbdulRazaq     Abiodun Jacob Ajiboye     Jide Ashonibare     Onikijipa     Tunde Akanbi     NYSC     Vasolar Consultoria     Bio Ibrahim     Owode Market     Alore     Funmilayo Mohammed     Olusin Of Ijara Isin     Bolaji Gambari     Segun Ogunsola     Harmony Holdings     Ahmed Shuaib Buranga     Olaiya Victor Mobolaji     Omotoso     Moro     Christopher Tunji Ayeni     Mustapha Akanbi     Medview Airlines     Abdulwahab Ololele     Monsurat Omotosho     Kwara Consultative Forum     Mahfouz Adedimeji     Elelu