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.

Offa     Monthly Sanitation     General Tunde Idiagbon International Airport Ilorin     Ibrahim Oloriegbe     Haliru Yahaya     Bashirat Bola Bello     Olaiya Lawal     Raliat Islamic Foundation     Omupo     NITDA     United Nigeria Airline     Hamidu Olowo     Park     Fatai Garuba Labaka     Mazars Consulting     First Lady     Abdulfatai Ahmed     KWSUED     Nagode     Ilorin West/Asa Federal Constituency     Economic And Financial Crimes Commission     Esinrogunjo     Kwara University Of Education     Alabi Lawal     Abdulraufu Mustapha     Halidu Danbaba     Adolescent Girls Initiative For Learning And Empowerment     Kayode Alabi     NAWOJ     Oja-Oba     Taiwo Joseph     A.G.F Abdulrasaq     Olateju Lukman     Abdulhakeem Amao     AbdulGaniyu Kareem     Obayomi Azeez     Adebayo Mohammed Kamaldeen     Ahmed Idris Mohammed     The Herald     Amuda Aluko     Kwara State Governor     Adamu Jemilat-Baki     Oluwarotimi Boluwatife Adenike     Maigida     Mohammed Haruna     Ibrahim Abiodun     General Tunde Idiagbon International Airport     Gbugbu International Market     Afetu Of Alabe     Chief Imam Of Ilorin     Idowu Laro     Oyun     Ubandawaki     CCB     Awoye     Neuropsychiatric Hospital     James Ayeni     LAK Jimoh     Zulkifli Ibraheem     AbdulRasaq Abdulmajeed Alaro     Amule     Bashir Badawi     Babatunde Ishola Babaita     Ilesha-Gwanara     LABTOP     Abubakar Abdulraheem     Salihu Ajibola Ajia     Nigeria Foundation For Artificial Intelligence     Amos Justus Sayo     Tafida     Kayode Laro     Tinubu     Osuwa     Moremi High School     Aasiyat Bello Oyedepo     Ibrahim Bio     Tunji Olawuyi    

Cloud Tag: What's trending

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

Odogun Olushola Gabriel     David Oyepinola Adedumoye     Oladimeji Thompson     Kwara Muslim Pilgrims Welfare Board     Kayode Laro     Yahaya Muhammad     Tunji Folami     Ado Ibrahim     UNIFEMGA     Coronavirus     BIR     Binta Sulyman     Musibau Akanji     NIPR     Abdul Jimoh Mohammed     Ganmo Electricity Sub-Station     Muslim Media Watch Group Of Nigeria     NSCIA     Idris Garba     Ahmed Idris Mohammed     Ajikobi     Isiaka Oniwa     Sheikh Alimi     Ubandawaki     Omotoso Musa     AbdulGaniyu Kareem     Elelu     Ajibola Ademola Julius     Yakub Ali-Agan     Special Adviser On Digital Innovation     Abdulkadir Bolakale Sakariyah     Raji Ayodele Kamaldeen     Funmilayo Isiaka Oniwa     Eleja Taiwo Banu     FOMWAN     Jalala     Jelili Yusuf     Salihu Alhaji Musa     Modibo Kawu     SUBEB     Road Transport Employers Association Of Nigeria     Benin Republic     Naira Redesign     Yahaya A Paniyaro     Cornelius Fawenu     IHS     Muhammad Akande Olarewaju Odunade     Ilesha-Baruba     Eruku     Council Of The Wise     Forgo Battery     Ibraheem Abdullateef     Bolakale Saka     Cornelius Adebayo     AbdulRazaq Abubakar Jiddah     Haruna Olawale Sulaiman     Popo-Igbonna     Sodiya     Chief Imam Of Offa     Kwara State Football Association     Tunde Saad     Okin Malt     Lateef Ademola Olatunji     Lucky Omoluwa     Nigerian Correctional Service     Oloyede     Lanwa     Bisi Oyeleke     Ijagbo     Saka Adeyemo     Buari Edun     TIIDELab     Nigerian Medical Association     Kazeem Adekanye     Special Agro-Industrial Hub     Falokun-Oja     Kwara State Health Insurance Agency