International Finance Corporation (IFC), a member of the World Bank Group, has said that the Credit Reporting System (CRS) and National Collateral Registry (NCR) will help facilitate over $20 billion in financing to over 40,000 Small and Medium Enterprises (SMEs) in Nigeria, if fully implemented in the next three years.
This information was made available during the Onitsha Interactive Forum on the National Collateral Registry and Credit Reporting System, which was held for MSMEs and financial institutions on Wednesday, September 28, 2016.
The IFC Country Manager for Nigeria, Eme Essien Lore said, “Extending credit to a small company or business will expand their services, create jobs and further the country’s economic growth, and that is why IFC has supported the Central Bank of Nigeria (CBN) in developing a movable asset registry and strengthening the existing Credit Reporting System in order to facilitate easier access to loans for MSMEs while promoting a responsible lending culture in Nigeria.”
She added that “three years after the full integration of these projects, it is expected that they will help generate over $20 billion in financing to over 40,000 SMEs, 5,000 micro enterprises and 8,000 women entrepreneurs.”
In her presentation on Credit Reporting System, Ms. Onome Ako, the Executive Secretary, Credit Bureau Association of Nigeria (CBAN), said the credit report is the historical fact lenders look into in assessing the credit worthiness of a potential borrower.
Ako said, “Access to finance is a fundamental prerequisite for the successful operation of any business whether small, medium or large. Therefore, the credit reporting system, as an enabling tool, will ease the chances of access to credit for consumers and businesses with impeccable historical repayment records. The credit bureaus are in charge of collating the credit history of individuals or businesses into a document called the Credit Report.”
Mr. Mainasara Muhammad, the Registrar, National Collateral Registry (NCR), said the registry will bring about financial inclusion and business growth.
Muhammad said, “By allowing small businesses and individuals with no fixed assets to pledge their moveable assets as collateral for loans using the newly developed collateral registry, businesses will thrive, and the goal of achieving financial inclusion for all will soon be achieved.”
He noted that the Secured Transactions in Movable Assets Bill 2016 has been sent to the National Assembly.