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.

Basic Education Certificate Examination     IFK     Raymond Olaitan     Chief Imam Of Omu-Aran     John Obuh     Yakub Lai Gobir     Sarafadeen Kayode Akorede     Awwal Jawondo     MMWG     Ebola     Wahab Egbewole     Tricycle Owners Association Of Nigeria     Ganmo     Ibrahim Bio     Gafaru Olayiwola Olorisade     College Of Health     Baakini     Isin     UNILORIN Alumni Association     Abraysports FC     Mumini Ishola Hanafi     Dele Belgore     Ibrahim Sulu Gambari     Islamiya Abdulraheem     Saidu Kawu     Raliat Elelu-Habeeb     Lanre Jimoh     Isiaka Oniwa     Hydro-electric Power Producing Areas Development Commission     Abdulfatah Ahmed     Tope Daramola     Opaleke Bukola Iyabo     Yusuf Amuda Abubakar     Ilorin Central Mosque     Alfa Modibo Belgore     International Public Sector Accounting Standards     Olokoba Abdullahi Ayinla     Olusola Saraki     Irepodun     Ahmed Ayinla Jimoh     Gbenga Olawepo     Yusuf Ali     Kwara State Geographic Information Service     Abdulraufu Mustapha     Baboko     Abraham Ojo     Saka Aleshinloye     General Hospital, Ilorin     Fatimat Saliu     Tinubu     Haashim Initiative For Community Advancement     Tunji Moronfoye     Abdulrazaq Akorede     Fola Consultant     Benin Republic     Abdulmalik Bashir Mopelola Risikatullahi     LABTOP     Olatunde Olukoya     Muhammad Ghali Alaaya     Yomi Adeboye     Bolaji Gambari     Bola Sagaya     Saka Saadu     Kaiama     Saheed Alakoso     Peter Obi     Ile Arugbo     Olumide Daniel Ibitoye     Law School Scholarship     Orisa Bridge     Tosin Saraki     Fatai Olodo     Okoolowo     Bilikis Oladimeji     Salihu Ajia     Women Radio     Saadu Alanamu    

Cloud Tag: What's trending

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

Sardauna Of Ilorin     University Road     Bayo Mohammed Onimode     Kaosarah Adeyi     Bayo Ojo     Shehu Raheem Adaramaja     Lawal Arinola Kudirat     Yusuf Abdulraheem     Agor Market     Bello Oyedepo     Radio SBS     UNIFEMGA     Busari Alabi Alausa     Taofik Abiodun Ahmed     Femtech     Labour Party     Yemi Sanni     Olayinka Jelili Yusuf     Azeez Salawu     Salihu Alhaji Musa     Owu Fall     Bayo Ajia     Olaosebikan     AGF Abdulrazaq     Ayodele Kuburat Olaosebikan     Mike Omotosho     Balogun-Ojomu     Sarakite     Mope Dasuki Belgore     Sheikh Ariyibi     Sebastine Obasi     Magaji Nda     Ibrahim Bio     Saka Onimago     John Dara     Abdulmutalib Shittu     Marufat Oladosu     Owo Isowo     Offa Poly     Basit Olatunji     Madawaki Of Ilorin     Madawaki     Olatunde Olukoya     Shuaib Abdulkadir     Sadiq Umar     Bola Sagaya     Fola Consultant     Doyin Group     Ahmad Belgore     Alao Ayotunde     Association Of Kwara State Online Media Practitioners     MMWG     Bayo Onimago     Chemiroy Nigeria Limited     Government Girls’ Day Secondary School Pakata     Yusuf Amuda Abubakar     General Hospital     Police Commissioner     Dar-Al-Handasah Consultants Ltd     Wakilin Mata Lafiagi     Galadima     Saka Adeyemo     Raliat AbdulRazaq     Mohammed Lawal Bagega     Abdullahi Saadudeen Alikinla     Tunde Idiagbon Road     Abubakar Suleiman     Oniwasi Agbaye     Mogaji Aare     National Association Of Nigerian Students     Lawal Olohungbebe     Salmon Babatunde Salmon     Yakub Lai Gobir     Senate President     Amusement Park     Gurei     Lanre Olosunde