Osinbajo Signs Laws to Ease Access to Credit Facilities for MSMEs
Acting President Yemi Osinbajo, has signed into law two bills that would give easy access to credit facility for Nigerians. The bills which have now become, Acts, are the Secured Transactions in Movable Assets Act, 2017 (otherwise known as Collateral Registry Act) and the Credit Reporting Act, 2017.
A statement signed by the spokesman to the Acting President, Mr. Laolu Akande, on Tuesday 30th May 2017, stated that the laws would ultimately facilitate the achievement of the goals of the Presidential Enabling Business Environment Council (PpEBEC) set up by President Muhammadu Buhari in July 2016 and make Nigeria an easier place for businesses to start and thrive. The statement stated: The Collateral Registry Act’ ensures that Micro, Small and Medium Enterprises (MSMEs) in Nigeria can register their movable assets such as motor vehicles, equipment and accounts receivable in the National Collateral Registry, and use same as collateral for accessing loans. This in turn will increase their chances at accessing funds and tackle one of the major obstacles faced by MSMEs. “Access to credit is critical to economic growth and is considered to be the motor for driving private sector development.
However, in Nigeria more than 70% of private enterprises, typically MSMEs, have limited or no access to credit. Credit applications get rejected due to insufficient credit history and information for the lender to use to make a reasonable judgement, as well as unacceptable collateral. The two new Acts remove those obstacles for MSMEs.
Meanwhile, the Acting President yesterday inaugurated the Presidential Industrial Policy and Competiveness Advisory Council, mandating it to develop policies that would make the economy competitive. Members of the Council from the private sector include the Chairman, Nigerian Breweries and PZ Cussons, Kola Jamodu; Chairman, BUA Group, Abdulsamad Rabi; Chairman, IVM Innoson Group of Companies Limited Dr. Innocent Ifediaso Chukwuma; GMD, Chi Foods Nigeria, Mr. Rahul Savara;
Read more at: http://www.vanguardngr.com/2017/05/osinbajo-signs-laws-ease-access-credit-facilities-msmes-2/