The Central Bank of Nigeria (CBN) has said the National Collateral Registry will increase lending by financial institutions to Medium, Small and Micro Enterprises to over N1.23 trillion.
The CBN Governor, Mr Godwin Emefiele said this on Monday in Abuja at the First National Workshop for Justices and Judges on Secured Transactions in Movable Assets Act, 2017.
The workshop had as its theme: “Leveraging on Movable Assets for Credit Delivery in Nigeria: Legal and Regulatory Framework’’.
Emefiele explained that the Secured Transactions in Movable Assets Act, 2017 allows borrowers to seek credit from any financial institution, leveraging assets like jewelries, farm products and vehicles as collateral.
He said that the CBN pushed for the establishment of the act to enhance financial inclusion by expanding the use of other assets aside land as collateral.
“As at Jan. 31, 2019, 628 financial institutions comprising 21 Deposit Money Banks, four Merchant Banks, one Non- Interest Bank and four Development Finance Institutions have registered on the Portal.
“Also, 551 Microfinance banks, 13 Non-Bank Financial Institutions and 34 Finance Companies have registered their institutions on the portal.
“Lending institutions have registered interest on movable assets worth N1.23 trillion, 1.144 billion dollars and 6.08 million Euros using 41,408 financing statements by 163,042 borrowers.
“This underscores the potential of the use of movable assets and hence our resolve to drive its growth,’’ he said.
Also, the acting Chief Justice of Nigeria, Honourable Justice Ibrahim Muhammad, pledged that the judges would interpret and apply the Secured Transactions in Movable Assets Act, 2017 in their judgments.