The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, yesterday said the banking sector gave credit facilities amounting to N1.80 trillion, $1.36 (N515.7 billion) and €10.92 million (N5.394 billion ), totalling N2.32 trillion to 273,435 large companies, individuals and Micro, Small and Medium Enterprises (MSMEs) registered under the National Collateral Registry (NCR).
He said the figures, which were generated from a total of 113,153 financing statements registered on the registry in respect of movable assets offered as collateral, comprised 262,904 individuals; 1,421 large firms; 4,260 medium firms; 1,433 micro-businesses and 3,417 small businesses.
The NCR came into effect in May 2016.
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Emefiele spoke in Abuja at a virtual workshop on “Secured Transactions in Movable Asset and Credit Reporting Reforms in Nigeria,” organised for judicial officers.
The Chief Justice of Nigeria (CJN), Justice Ibrahim Muhammad, at the occasion, promised that the judiciary will ensure speedy dispensation of justice in commercial or business transactions, adding that the financial sector and the overall economy will benefit from such timely adjudication.
Emefiele stated that as at September 30, a total of 694 financial institutions comprising 22 deposit money banks, four merchant banks, five development finance institutions, 580 microfinance banks, 37 non-bank financial institutions, 43 finance companies, one Primary Mortgage Banks (PMBs) and two non-interest financial institutions had registered on the NCR portal.
He described the registration as the first step towards buy-in to the registry’s operations.
He said some components of the foreign currency-denominated loans represented the much-needed capital inflows into the economy and attested to the power of the registry as well as the Secured Transactions in Movable Assets Act (STMA)-centric reforms by the apex bank, to engender economic development.
Emefiele, represented by CBN’s Director in charge of Development Finance Department, Mr. Yila Yusuf, stressed the need to sensitise judicial officers as enablers in the implementation of both the STMA and Credit Reporting Act (CRA, 2017), with a view to strengthening adjudication over them.
He 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.”
