National Collateral Registry’ll boost production, create jobs – CBN

From Maryam Ahmadu-Suka, Kaduna

The Central Bank of Nigeria (CBN) has said that the National Collateral Registry, which it recently developed with the support of the International Financial Corporation (IFC), a member of the World Bank group, to allow low-income earners and small-scale entrepreneurs to secure loans against movable assets, will not only increase local production but will help in reducing unemployment.

Speaking at the Kaduna Interactive Forum on the National Collateral Registry and Credit Reporting System, the Registrar, of the National Collateral Registry (NCR), Mr. Mainasara Muhammad said the Collateral Registry will help bridge the MSME finance gap that had been estimated to be about $62 billion.

“There are about 37 million micro, small, and medium-size enterprises (MSMEs); many of whom are struggling to gain access to the capital they need to grow because they lack collateral such as land and buildings that banks usually request for. This collateral gap between the bank and MSMEs has led to a finance gap of about $62 billion.

“Knowing that these MSMEs contribute significantly to economic growth and job creation in Nigeria, the National Collateral Registry will help bridge the MSMEs finance gap by facilitating easier access to funding which will ultimately boost production and lead to creation of employment,” he said.

The IFC Country Manager for Nigeria, Eme Essien Lore, said, “the online registry coupled with the credit reporting system has been implemented in other countries like Ghana and Liberia with success recorded”.