Business

Over 273,000 MSMEs secure  N2.32trn loans using movable assets collateral-CBN

Over 273,000 MSMEs secure  N2.32trn loans using movable assets collateral-CBN

 

The Governor of the Central Bank of Nigeria (CBN) Mr. Godwin Emefiele has revealed that no fewer than 273,435 Micro, Small and Medium Enterprises in Nigerian received loans valued at N2.32 trillion using movable assets as collaterals.

Emefiele made this known on Tuesday, while speaking during a virtual workshop organised for judicial officers titled “Secured Transactions in Movable Asset and Credit Reporting Reforms in Nigeria,”

The National Collateral Registry (NCR) came into effect in 2016. It was created to enable loan seeking individuals and entrepreneurs to access loans with movable assets after the assets have been registered NCR

The governor broke down the beneficiaries as 1,421 large firms, 262,904 individuals, 4,260 medium firms; 1,433 micro-businesses and 3,417 small businesses.

He further disclosed that a total of 694 financial institutions made up of 22 Deposit Money Banks (DMB), four merchant banks, five development finance institutions, 580 microfinance banks, 37 non-bank financial institutions and 43 finance companies registered under the NCR portal.

The CBN governor who was represented by the bank’s Director, Development Finance Department, Mr. Yila Yusuf, said; “a lending relationship is based on trust and it is our belief that lenders will respond positively to the yearnings of MSMEs for greater access to finance, given the assurance that their legitimate interests will be protected under the enabling laws of the land.

“To this end, it is pertinent that we solicit and get the full support of the judiciary and law enforcement agencies towards providing a robust and resilient financial infrastructure that will deepen credit delivery to our MSMEs.”

In his speech, the Chief Justice of Nigeria (CJN), Justice Ibrahim Muhammad promised that there will be speedy dispensation of justice in areas of commercial and business transactions.

According to him, the financial sector and the national economy will benefit from speedy justice dispensation, adding that the judiciary remains very important to the financial sector.

Muhammad added that the decision of investors was often based on the enforceability of their rights in all commercial venture.

“As access to credit is necessary for the economic development of Nigeria, it behooves  the judiciary to protect parties to a transaction and ensure fair and ethical standards.

“The purpose of both laws is to facilitate and promote access to credit and enhance risk management in credit transactions.

“The protection of the rights of parties in a credit transaction would promote responsibility in the market and encourage responsible borrowing,” he said.

Comment With Facebook

Comment here

This site uses Akismet to reduce spam. Learn how your comment data is processed.