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.

Aliyu Kora-Sabi     Ethical College     Muhammad Ghali Alaaya     Abdulrahman Abdullahi Kayode     Saliu Shola Taofeek     Saliu Oluwole     MAI Akande     Mohammed Tunde-Jimoh     Bayo Onimago     Elections     Funke Adedoyin     Olatunde Olukoya     Unilorin     Mufti Of Ilorin     Ayobami Seriki     Oya State     Yahaya Abdulkareem     Jimba Babatunde     Federal Polytechnic Offa     Oloye     Yusuf Lawal     Adeola Abraham     Ibrahim Abdulqadir Abikan     Federal Road Maintenance Agency     Olaitan Buraimoh     Owo Arugbo     Osi     Muhammed Taofeeq Abdulrazaq     Mohammed Jimoh Faworaja     ER-KANG Mining Nigeria Company Limited     Eghe Igbinehin     Chief Imam Of Offa     Solomon Edoja     IEDPU     Christopher Odetunde     Umar Sanda Yusuf     PharmAccess Foundation     Bilikisu Gambari     Okiki     Tsaragi     Yomi Ogunsola     David Oyepinola Adedumoye     National Broadcasting Commission     TETFUND     Segun Olawoyin     Ndakene     Muhammad Fawaz Abubakar     Bashirat Bola Bello     Temitope Ogunbanke     Idowu Aremu     Jaigbade Alao     Minimum Wage     Yemi Sanni     National Association Of Nigerian Students     Ojuekun Sarumi     Babaloja-General     QuickWin     Javed Khan     Umar Yakubu Jaja     Isaac Aderemi Kolawole     Marufat Oladosu     Bareke     Abdulkadir Akanbi-Oke     Hamza Usman     AbdulRasaq Abdulmajeed Alaro     Adamu B. Yaqubu     Shuaib Abdulkadir     Jani Ibrahim     Ilorin General Hospital     Iyabo Adisa Ibiyeye     Kwara 2015     ASKOMP     Omotoso     Nigeria Customs Service     Sadiq Umar     Toyin Saraki     Olusegun Adeniyi    

Cloud Tag: What's trending

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

Rasaq Jimoh     Madawaki     Abdulsalam Firdaous Amosa     Alore     Ayinde Oki     Lanre Badmus     Abdulhakeem Amao     Ilorin Talaka Parapo     Mohammed Yahaya Barki     2017 Budget     Shuaib Abdulkadir     Abdulkadir Jimoh     Issa Manzuma     Bolakale Kawu     Mazars Consulting     Mohammed Abdulahi     Curfew     Kwara State Geographic Information Service     AGILE Programme     Chikanda     Valsolar Consortium     Gbenga Awoyale     Belgore     Umaru Saro     Federal Road Maintenance Agency     Waziri Yakubu Gobir     Shehu Adaramaja     Mohammed Haruna     Olushola Saraki     Ilorin General Hospital     Crystal Corner Shops     GANZY     Ibrahim Abdullahi     Zulkifli Ibraheem     Kolade Solagberu     Lanre Jimoh     Abdulganiyu Oladosu     Segun Olawoyin     Yakubu Mohammed Abdullahi     Ayo Salami     Isaac Gbenle     Aliyu Kora-Sabi     Ilorin Curfew     Gbenga Adebayo     Bayo Onimago     QuickWin     Gbajabiamila     Danladi     Malete     Tsaragi-Share     Senior Staff Union Of Colleges Of Education     Olomu Of Omu-Aran     Dauda Adesola     Oladipo Akanmu Tolani     Samuel Adaramola     Usman Rifun     Amule     Kwara South     Adeleke Ogungbe     Ganiyu Taofiq     Yekeen Alabi     Abdulrasaq Alaro     Ibrahim Kayode Adeyemi     Mutawali Of Ilorin     Chartered Institute Of Personnel Management Of Nigeria     Tsaragi     Olatunde Michaels     Yahaya Abdulkareem Babaita     Oya State     Okanlawon Musa     Abdulrasheed Na\'Allah     KWIRS     Ado Bayero     Muhammad-Mustapha Suleiman     Ilorin East     LEAH Charity Foundation     Joshua Adeyemi Adimula