The Acting President Yemi Osinbajo on Tuesday signed into law two Acts of Parliament that had earlier been passed by the National Assembly to facilitate access to more affordable credit for Nigerians.
According to Punch, the assented Acts are the Secured Transactions in Movable Assets Act, 2017 (otherwise known as the Collateral Registry Act) and the Credit Reporting Act, 2017.
The Collateral Registry Act ensures that the Micro, Small and Medium Enterprises 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.
The Credit Reporting Act provides for credit information sharing between credit bureaux and lenders (such as banks), as well as other institutions that provide services on credit such as telecommunication companies and retailers.
A credit bureau is defined as a company that collects information relating to the credit ratings of individuals and makes it available to financial institutions, which need such information to determine an individual’s credit-worthiness and whether or not to grant loan applications to such an individual.
A statement by the Senior Special Assistant to the Acting President on Media and Publicity, Mr. Laolu Akande said “Access to credit is critical to economic growth and is considered to be the motor for driving private sector development.
“The Collateral Registry Act, 2017, will give confidence to lenders to utilise the Registry and thereby make credit available to the MSMEs and individuals through the use of their movable assets as collateral.
“The Credit Reporting Act now enables lenders to make reasonable judgement on whether or not to extend credit to an individual, and reduces the cases of bad loans.”
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