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.

Suwa-Arabs     Bello John Olanrewaju     Tope Daramola     Mohammed Ibrahim     Cassava Growers\' Association     Eleja Taiwo Banu     Kudirat Arinola Lawal     Hameed Oladipupo Ali     Yusuf Badmus     Islamic Development Bank     Mohammed Lawal Bagega     David Oyerinola Adedunmoye     Alanamu     Moji Makanjuola     Victor Gbenga Yusuf     Joana Nnazua Kolo     Olugbense     Tosin Saraki     Ahmad Ali     Ezekiel Yissa Benjamin     Idris Amosa Oladipo Saidu     Harrison Osauwagboe     Abubakar Ndakene     Adolescent Girls Initiative For Learning And Empowerment     Aishat Sulu-Gambari     Shuaibu Yaman Abdullahi     Women For Change And Development Initiative     Yoonus Kola Olatinwo     Valsolar-Kwara Company Limited     Sam Onile     Saidu Isa     Abdullahi Dasilva Yussuf     Folashade Omoniyi     Lucky Omoluwa     Akorede     Sheriff Shagaya     Jimoh Lambe Abdulkareem     Mohammed Ajia Ibrahim     Ejidongari     AbdulRasaq Abdulmajeed Alaro     Adama Isa     Ahman Pategi University     Oyedepo     Ganmo Power Sub-Station     Alaiye     Salihu Ajia     Ibrahim Abikan     Kwabes     Tafidan Kaiama     PAACO-PCL Consortium     Saad Belgore     Balikis Jawondo     Gaa Olobi     Abdulmumini Sanni Jawondo     Olayinka Olaogun     Najim Yaasin     Onilupeju Of Ilupeju     Mohammed Khadijat Kubura     Abdulrahman Abdulrasak     C2c@kwarastate.gov.ng     School Of Nursing     AIT Ilorin     Zainab Abass     Ita-Nmo Market     Kwara State Television (KWTV)     NIPR     Ibrahim Abdulqadir Abikan     Salaudeen Oyewale     Bayo Lawal     Amos Sayo     Daud Adeshola     Taofeeq Olateju     TETFUND     Omupo     United Nigeria Airline     Salary     Oja-Oba    

Cloud Tag: What's trending

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

Abdulraheem Yusuf     Amos Justus Sayo     Ahmed Alhasssan     Radio Kwara     SAPZ Project     Onilu     International Public Sector Accounting Standards     CELF     Justina Oha     Femi Oladiji     Laduba     KWACOBPA     Coalition Of Kwara North Groups     Tunde Idiagbon Road     Shaaba Lafiagi     Plat Technologies     Kwara State Fire Service     JSSCE     Ndama Al-hassan     Tanke Road     Abdulbaqi Jimoh     Kayode Zubair     Abdullateef Abdussalam     Umar Sanda Yusuf     Logun     Kwara State Fish Farmers Association     Rex Olawoye     Omoniyi Ayinla     Amos Sayo     Kisra     Mohammed Ibrahim     Ojuekun     Ilorin Emirate Staff Association     Ministry Of Women Affairs And Social Development     Ilorin Durbar     Balogun Gambari     Tricycle Owners Association Of Nigeria     Shero     International Aviation College     Peter Obi     Sadiq Buhari     Valsolar-Kwara Company Limited     Wahab Isa     Charcoal     Alao Ayotunde     Ubandoma     Tunji Moronfoye     Abdulganiyu AbdulAzeez     Yahaya Seriki Gambari     Cornelius Adebayo     AbdulRazaq Jiddah     Bashir Badawi     Funmilayo Isiaka Oniwa     Gbajabiamila     Nurudeen Mohammed     KFA     ER-KANG     Ishola Balogun Fulani     Gambari     Falokun-Oja     Hamid Bobboyi     RTEAN     Maimunat Oloriegbe     CUTI     IHS Towers     Kwara State Health Insurance Agency     Muhammed Aliyu     Isa Aremu     Boko Haram     Emir Of Shonga     NULGE     Muhammed Mahe Abdulkadir     John Olobayo     Post-utme     Col. Taiwo     Ijakadi     Medinat Folorunsho Salman