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.

Salaudeen Oyewale     Omoniyi M. Ayinla     Olokoba     N-Power     Otunba Taiwo Joseph     Presidential Election     Kpotum Mohammed Baba     Memunat Monsuma     Salihu Ajia     Emir Of Lafiagi     Ilorin Amusement Park     Rebecca Olanrewaju     Akom Construction And Engineering Synergy Ltd     Oloruntoyosi Thomas     Oasis Muslim Care Foundation     Yoruba     Lawal Arinola Kudirat     Mohammed Jimoh Faworaja     John Mayokun Dada     Muhammed Taofeeq Abdulrazaq     Isiaka Saka Opobiyi     Mumini Ishola Hanafi     Alabe     Bello Oyebanji     Kwara TV     SWAN     BECE     Yusuf Zulu-Gambari     Islamiya Abdulraheem     Matthew Okedare     Moro     Abubakar Usman Jos     Sulyman Buhari     Bankole Omishore     Salary     Shehu Alimi Foundation For Peace And Development     Umaru Saro     Riskat Opakunle     Fola Consultant     Overland     Principal Private Secretary     Kwara State Coalition Of Business And Professional Associations     Kwara Central     Afusat Nike Ibrahim     Raji AbdulRasaq     Oke-Ode     Muyiwa Oladipo Kanu     Omotosho     Awwal Jawondo     Amuda Aluko     Shagari     COVID-19 Palliatives     Imodoye Writer’s Enclave     General Tunde Idiagbon International Airport Ilorin     General Hospital, Ilorin     Adamu Atta     Hassan Taiye Salam     Abiodun Oyedepo     Wahab Abayawo     Ilorin Emirate     Adama Isa     Ibrahim Gambari     Olayinka Jelili Yusuf     Idris Garba     Rasheed Jimoh     Ethical College     Abubakar Abdullahi Bata     Economic And Financial Crimes Commission     TVC Female National Debate     SSUCOEN     2023 Elections     Yahaya Seriki     Kayode Ibrahim     Elewu     Olugbense     Khairat Gwadabe     Roheemat Hammed    

Cloud Tag: What's trending

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

Government House     Adesoye     Sobi Specialist Hospital     Ayo Opadokun     Kwara State Fire Service     Oye Tinuoye     Ambassador Kayode Laro     Elelu     Elesie Of Esie     Lola Ashiru     Bio Ibrahim     Kayode Oyin-Zubair     Cassava Growers\' Association     Lanre Badmas     Doyin Group     Ariyo     Curfew     Omar Gambari     Kehinde Boyede     Dar-Al-Handasah Consultants     Sa\'ad Alanamu     IFK     Hausa     Oko-Olowo     Owo Isowo     Federal College Of Education (Special), Afon     Forgo Battery     Olomu     Societe Generale Bank Of Nigeria     Lateef Ademola Olatunji     Ebola     Yahaya Seriki     Moses Salami     James Kolo     IPSAS     Iyabo Dupe Adekeye     Dan Iya Of Ilorin     Salihu Yahaya     Grillo     RTEAN     Baakini     Teachers Specific Allowance     Muhammad Toyin Sanusi     Olatinwo     Salman Suleiman     CCT     Abdulrahman Iliasu     Mohammed Haruna     Seun Bolaji     Abdulmutalib Shittu     Musa Alhassan Buge     Kwara     Adebara     Amasa     Ilorin Talaka Parapo (ITP)     AbdulRasaq Abdulmajeed Alaro     Al-Adaby     Babajide Ajayi     Muazam Nayaya     Adedayo Yusuf Abdulkareem     Ibrahim Abdullahi     Marufat Oladosu     Medview Airlines     Alapansapa     Galland Marcias     Kazeem Gbolagade     Abdulrazaq Sanni     Alaiye     Amosa     Boko Haram     Maryam A. Garuba     Veterinary Teaching Hospital     Kudirat Arinola Lawal     Saidu Yaro Musa     Offa Grammer School     Kunle Okeowo     Musa Abdullahi