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.

Okin Biscuit     Tsaragi     Florence Saraki     Chief Imam Of Omu-Aran     Jimoh Lambe Abdulkareem     Doyin Agbamu     Quarry Royal Valley     Daud Adeshola     Aliyu Sabi     Patigi Regatta     Lafia Aliyu Korasabi     Jalala     Musa Alhassan Buge     Emmanuel Olatunji Adesoye     Kale Kawu     Ajuloopin     Omar Gambari     Valsolar     Imodoye Writer’s Enclave     Coalition Of Kwara North Groups     Ahman Pategi University     Alabe     Musa Ayinla Yeketi     Yusuf Aiyedun     United Nigeria Congress Party     Adedeji Onimago     Owo Arugbo     March 18     Egbewole     Saidu Isa     Kwara State Fire Service     Tunde Idiagbon Road     Kwara Coalition Of Business And Professional Associations     AbdulRasaq Abdulmajeed Alaro     Abdulrahman Abdulrazaq     Ajibola Ademola Julius     Okanlawon Taiwo     Ayekale     Offa Descendants Union     Ayodele Kuburat Olaosebikan     Bola Ahmed Tinubu     Chemiroy Nigeria Limited     Senior Staff Union Of Colleges Of Education     Kamaldeen Gambari     Issa Memunat Moyosore     Awili Pedro     Idiagbon     Abdulrazaq Aiyelabegan     Babaloja-General     Bello Oyebanji     Olosi Of Osi     Village Alive Development Association     Bello Abubakar     Yakubu Shaaba     Rex Olawoye     Shehu Alimi Foundation For Peace And Development     Ebola     Isaac Gbenle     Iliasu     Centre For Digital Economy     Olugbense     Kawu     Ilorin International Airport     Suleiman Mora Omar     Dauda Adeniran Adeshola     Adeola Abraham     Hikmah AbdulKareem     Irepodun     A.O. Belgore     Ganmo     Ahmed Dankaya     Ita-Ore     Niguel Gallando Marcias     Majlis For Sadakah, Zakat And Waqf     Saheed Akinwumi     IDPU     Aisha Ahman Pategi    

Cloud Tag: What's trending

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

Abdulazeez Uthman     Ibrahim Abikan     Abubakar Baba Sulaiman     Ahmed Bayero     AGILE Programme     Emir Of Yashikira     Yusuf Amuda Aluko     The Herald     Ita-Nmo Market     Gbenga Awoyale     JMK Construction Company Limited     Afolasade Opeyemi Kemi     COVID-19 Palliatives     Shettima     Twitter     Abdullah Janet Amudat     CCT     Elesie Of Esie     Afeyin-Olukuta     Opolo Global Innovation Limited     Sa\'adu Salau     Abiodun Oyedepo     Olusegun Adeniyi     Olofa Of Offa     Kawu     ASMAU PLAZA     SSUCOEN     Rotimi Atere     National Association Of Nigerian Students     Alfa Yahaya Road     Congress For National Consensus     Mahmud Ayinla Giwa     Standard Organization Of Nigeria     Oyin-Zubair     Vasolar-Kwara Company Ltd     Islamic Development Bank     John Kehinde Salako     Ibrahim Orire     Alikinla     Kwara State Health Insurance Agency     Kwara Basketball Association     Esinniobiwa Quareeb     Kola Adesina     Kwasu     Medview Airlines     Tafida     Rachael Obisesan     Sa\'adu Gambari     ASKOMP     Odo-Owa     Elerinjare-Ibobo     Olatunji Ayeni     Universal Basic Education Commission     Ilorin Talaka Parapo     Ashiru     Budo Egba     General Hospital     Nurudeen Muhammed     Abdulganiy Abimbola Abdussalam     Mubarak Oladosu     Kulende-UITH     Omar Gambari     Ilorin West/Asa Federal Constituency     Dar-Al-Handasah Consultants     Shehu Salau     Bello Oyebanji     Idris Amosa Saidu     Peculiar Allowance     Reuben Paraje     Mohammed Abduraheem     Plat Technologies Limited     LEAH Charity Foundation     Budo-Egba     Javed Khan     Abdullahi Atanda     Omu-aran     Dankaka