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CBN: National Collateral Registry lists N688.35bn financial statements

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CBN: National Collateral Registry lists N688.35bn financial statements

The Central Bank of Nigeria (CBN) has said 552 financial institutions have registered 32,645 financing statements valued at over N688.35 billion, $33.4 million and £6000 respectively on National Collateral Registry platform created in May 2016 for small and medium enterprises (SMEs) support.

CBN Governor, Mr. Godwin Emefiele, confirmed the figures yesterday in Abuja as he called on commercial banks and other financial institutions to come up with innovative ways to fund the micro, small and medium Enterprises sub-sector of the economy.
Emefiele spoke in Abuja at the 11th Annual Banking and Finance conference organised by the Chartered Institute of Bankers of Nigeria (CIBN).

The conference, which is the single largest gathering of bankers in Nigeria, had as its theme “MSMEs: The game changer for economic growth and development.

“I am very optimistic that the collateral registry will have tremendous impacts on MSME lending in Nigeria and in the foreseeable future.

“This is especially considering the recent launching of the economic recovery and growth plan which intends to leverage on the power of the private sector in its economic recovery and transformative growth by prioritizing all MSME’s in all critical sectors as a significant source of long term growth,” said the governor.

He said MSMEs played a major role of job creation, tasking banks’ chief executives to channel more funds to the sector.

He listed intervention programmes for SMEs development to include MSME development fund; Small and medium enterprises creative guarantee scheme; National Collateral Registry and the Entrepreneurship Development Center.

He said one of the programmess to make funds available to the sector is the national collateral registry, which is a financial infrastructure introduced to support the crippling market by enabling micro enterprises to use their moveable assets as collateral for bank loans.

The CBN governor urged participants at the conference to debate constructively on the ways to further support MSMEs in Nigeria to be able to perform their essential roles of enhancing economic growth and inclusive development. The governor said that the apex bank had developed many programs to reduce the risk of lending to the sector.

In his welcome remarks, the President and Chairman of Council, (CIBN), Dr Uche Olowu, acknowledged the potentials of MSMEs, but however there was a need to address the constraints militating against their contributions to the economy.

“Truly, MSMEs should be the game changer given their potentials and expected contribution in an emerging or developing economy. “However, they are constrained by varied factors. 80 per cent maintain that access to finance remain their major challenge. They pay high tax rates of almost 30 per cent.

“In addition to lack of finance and high tax regime, they are further burdened by many and most times by conflicting and duplicated regulatory and other supervisory and government agencies. For instance, to run a restaurant, you must comply with the demands and rules of over ten agencies from federal, state and local government.

“Even though we have made little progress in the global ranking in ease of doing business, Nigerian business environment still remains very challenging,” he said.

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