By Ayobami Adedinni
The Governor of the Central Bank of Nigeria, Godwin Emefiele has disclosed that movable assets valued at N392 billion are on the National Collateral Registry platforms.
Emefiele who stated this in the NCR maiden edition newsletter said that 136 financial Institutions including 22 commercial banks,106 microfinance banks, 1 non-bank financial institution, 3 merchant banks, 3 development finance institutions and 1 noninterest bank have registered 16,236 financing statements for 20,684 movable assets on the NCR platform valued at N392 billion.
He said when he resumed as governor on June 3, 2014, one of his vision statements was to ensure and to create a people centered Central Bank of Nigeria and improved access to credit to MSMEs.
According to him, one of the key strategies to achieve this was to significantly improve the credit culture in the Nigerian Banking System, by designing and introducing a robust system that effectively reduces information asymmetry, assists lenders to make good credit decisions and ultimately improve access to credit by Micro Small and Medium Enterprises (MSMEs) hence the establishment of a Secured Transaction and National Collateral Registry (ST&NCR).
He said this has now been fulfilled with the commencement of live operations of the National Collateral Registry (NCR), on May 25, 2016 and the accent to the Secured Transactions in Movable Assets Act, 2017 by the Acting President Professor Yemi Osinbajo on 30th May, 2017.
Speaking on the benefits, he said, “The NCR will unlock access to credit, which has always been a major concern to Nigerian MSMEs, particularly the micro enterprises, which are about 99 per cent of the 37.1million MSMEs in the country, according to the National Bureau of Statistics (NBS). Financial institutions traditionally prefer fixed assets, such as land and building as collaterals for loans, while majority of the MSMEs can only provide movable assets such as inventory and equipment.
“The lack of access to credit for MSMEs in Nigeria, has resulted in a huge financing gap. Records show that in 2016, loans to MSMEs by Deposit Money Banks as a percentage of their total loans and advances to the economy declined to 0.067% from 0.099% achieved the preceding year. There is no gainsaying, that the lack of access to finance has been one of the major impediments to the development of the sub-sector in Nigeria today.