CBN’s NCR records N16.6trn in collateralised credit for MSMEs

The moves by the Central Bank of Nigeria (CBN)  to improve access to finance particularly for Micro, small and medium enterprises (MSMEs) have been commended as over N16.6 trillion in credit has been collateralised on the portal of the National Collateral Registry (NCR). The Registrar of the NCR, Mr. Bulus Musa, who disclosed this at […]

The moves by the Central Bank of Nigeria (CBN)  to improve access to finance particularly for Micro, small and medium enterprises (MSMEs) have been commended as over N16.6 trillion in credit has been collateralised on the portal of the National Collateral Registry (NCR).

The Registrar of the NCR, Mr. Bulus Musa, who disclosed this at a town hall meeting on the sensitisation of the use of Secured Transactions in Movable Assets (STMA) Act 2017 which was organised by the Development Finance Department of the CBN in collaboration with the NCR in Lagos, said about 752,000 MSMEs have registered movable assets to obtain loans from financial institutions since the inception of the NCR in 2017.

The NCR is an initiative of the CBN with support from the International Finance Corporation (IFC), set up to promote the acceptance of movable asset – equipment, machinery, vehicles, Keke – NAPEP, crops, livestock, account receivables, inventories, and jewellery – as collateral for loans by financial institutions. The Collateral Registry facilitates the use of movable / personal assets as collateral that remain in possession or control of the borrowers and thereby improves access to secured finance

“We have captured about 752,000 registrants and credit that has been granted or collaterised currently stands at N16.6 trillion on the NCR portal. The governor of the CBN, Mr Godwin Emefiele is concerned about the growth of the MSMEs.

“What the small-scale industries need to do is go to their bank, tell their bank that I do not have landed properties but I have a motorcycle, vehicle, jewellery, an account receivable from a reputable company, inventory and discuss with them, they will register these documents on the NCR and when it is registered on the NCR, it gives that bank the priority over these assets and they give you the amount you need for credit but you know the asset is still with you,” he said.

The Local Economic Development and Value Chain Advisor, GIZ-SEDIN, Lagos, Toyin Craig-Adeniran, stated that part of the organisation’s mandate is to support MSMEs. She noted access to finance remained a major challenge for entrepreneurs.