From Tony Osauzo, Benin
There is good news for farmers and operators of Micro, Small and Medium Enterprises (MSMEs), as the Central Bank of Nigeria (CBN), has set up National Collateral Registry (NCR) to assist them obtain loans from financial institutions to boost their business, using movable assets as Collateral.
The apex Bank in collaboration with the International Finance Corporation (IFC), established the NCR, a financial infrastructure that will enable MSMEs to leverage on their movable assets (equipment, machinery, vehicles, keke-napep, crops, livestock, account receivables, inventories, jewelries etc) as collateral for loans in their various banks.
Speaking at a town hall meeting in Benin yesterday, with the theme “MSMEs Safe Haven : Improving Financial Access to the Nation’s Main Economy Drivers”, the Registrar, National Collateral Registry, Mr. Bulus Zgabawa Musa, an Assistant Director of the CBN, said NCR was created in 2015 to deal with movable assets which financial institutions would accept as Collateral to guarantee loans for farmers and MSMEs operators.
Musa who was represented at the event by Dr. Xavier Itam Okon, explained that NCR provides information on all movable assets to banks to enable them reach appropriate decisions on giving loans to prospective clients.
“The message is that you can walk into any of your banks to take business loans, using movable Collateral or assets.
The event was organised by NCR in collaboration with Pro-Poor Growth and Promotion of Employment in Nigeria Program- Sedin of Deutsche Zusammenarbeit (GIZ).
Earlier, Mr. Olawale Afolabi of GIZ, told participants that what his organisation does is to assist prospective clients solve the problems of getting loans from financial houses.
“What we do at GIZ is to look at the problems of securing loans from financial houses. We also teach how to prepare proposals, and support the Cassava value chain,” Afolabi said, adding that GIZ has been in Nigeria since 1974.
Participants at the event, especially those from the informal sector, were urged to think ahead for their retirement by saving gradually.