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.

CBT     Ilesha-Baruba-Gwanara     KwaraLearn     Dar-Al-Handasah Consultants     Gbugbu     Issa Memunat Moyosore     Mohammed Alabi Lawal     Simon Sayomi     Umar Ahmed Gunu     Sherif Shagaya     Kayode Ibrahim     General Hospital     Jawondo     Abdullahi Saadudeen Alikinla     Emir Of Lafiagi     Federal Allocation     Samuel Elizabeth Keatswa     Student Learning Support Helpline     Ahmed \'Lateef     Abatemi-Usman     Kwara State Television (KWTV)     Mutawali Of Ilorin     Charles Ibitoye     John Obuh     Kwara State Sports Commission     Yahaya Oloriegbe     Share/Tsaragi     Abdulraufu Mustapha     National Association Of Nigerian Students     Ganmo Power Sub-Station     Moremi High School     Bahago     Osi     Ronke Adeyemi     Wasiu Onidugbe     Sulu Gambari     George Funsho Adebayo     Lanre Olosunde     Talaka Parapo     Raymond Olaitan     Sambo Murtala     Ilorin Descendants Progressive Union     Femi Agbaje     Oke-Ero     Principal Private Secretary     Christopher Odetunde     Garuba Alikinla Shittu     Abdulfatah Ahmed     Mohammed Saidu     Moses Adekanye     Tayo Alao     Bursary     KWSIEC     International Public Sector Accounting Standards     Baba Isale     Ilorin East     08001000100     Ojuekun Sarumi     Ike Ekweremadu     Lithium Deposit     Kayode Alabi     Labour Party     Isiaka Rafiu Mope     Ajayi Okasanmi     Sai Kayi     Ilota     Ridwan Agboola     AbdulHamid Adi     Jalala     Senate     Akanbi-Oke     Ekweremadu     Cassava Growers\' Association     Muhammad Ghali Alaaya     Olufolake Abdulrazaq     Kisira     Kawu    

Cloud Tag: What's trending

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

Lotus Bank     Lanwa     Mohammed Yahaya Barki     Biliaminu Aliu     Jimoh Lambe Abdulkareem     Offa Metropolitan Club     Danhawa     Abdulwaheed Musa     Mahee Abdulkadir     Samuel Adaramola     Sabi     Modibo Kawu     Ilorin Descendants Progressive Union     Okoolowo     Kamaldeen Kehinde     Abdulmumin Yinka Ajia     Amada Jidda     Ijagbo Health Centre     Funke Adedoyin     Tunji Oyawoye     Abdulrazaq Magaji     Abdulraheem Olesin     Saraki     Oyedepo     Ilorin Emirate Staff Association     Oke-Ode     Gobirawa     Bilikisu Gambari     UITH     Saka Balikis Kehinde     Elese Of Igbaja     Oluwatoyin Lukman     Pakata     Hassan Oyeleke     James Kolo     Jawondo     Yemi Sanni     Oke-Ero     Basic Education Certificate Examination     Razak Atunwa     Abdulrahman Abdulrasaq     Orire     Adamu Attah     Bello John Olanrewaju     Balogun Gambari     Ajasse-Ipo     Atunwa     Arandun     Deji Ajani     Kwara State Geographic Information Service     Olomu Of Omu-Aran     Lithium Deposit     Medview Airlines     Moses Salami     KWSIEC     Abdullahi AbdulMajeed     Valsolar Consultoria     Okanlawon Taiwo     Rihanat Ajia     Raliat AbdulRazaq     Isaac Aderemi Kolawole     Saliu Mustapha     Mohammed Yisa     Convocation Ceremonies     Kwasu     Opaleke Bukola Iyabo     Federal Allocation     Samari     Ahmed Ayinla Jimoh     Bayer Nigeria Limited     Muhammed Mahe Abdulkadir     Muyideen Ajani Bello     Clement Yomi Adeboye     Wahab Agbaje     SSA Youth Engagement     Government Girls’ Day Secondary School Pakata     Ajakaye