FG signs two laws to ease access to credit by SMEs

shakirudeen taiwo

May 31, 2017 11:28 AM

The two bills are part of the 60-Day National Action Plan for Ease of Doing Business initiated by the Presidential Enabling Business Environment Council (PEBEC).

Professor Yemi Osinbajo and President Muhammadu Buhari

The Federal Government of Nigeria has signed into laws two bills which will total ease access to credits by Nigerians.

These bills, which were passed earlier in the month, were part of the reforms introduced by the Presidential Enabling Business Environment Council (PEBEC) who noted that one of the major challenges of doing business in the country is difficulty accessing credits by Small and Medium Enterprises (SMEs).

According to a statement released on Tuesday, May 30, 2017, noted the Acting President, Professor Yemi Osinbajo has signed into law two bills - Secured Transactions in Movable Assets Act, 2017 (otherwise known as Collateral Registry Act) and the Credit Reporting Act, 2017.

On February 21, 2017, the leadership of the National Assembly has committed to passing the two bills as part of the 60-Day National Action Plan for Ease of Doing Business initiated by the Presidential Enabling Business Environment Council (PEBEC).

Mr Laolu Akande, Spokesman to the Acting President of Nigeria: “The passage of these Acts would help in achieving the goals of the Presidential Enabling Business Environment Council (PEBEC) set up by President Muhammadu Buhari in July 2016 and chaired by the Vice-President to progressively make Nigeria an easier place for businesses to start and thrive.”

The statement also revealed that the ‘Collateral Registry Act’ is to help Micro, Small and Medium Enterprises (MSMEs) in Nigeria register their movable assets (motor vehicles, equipment and accounts receivable) in a National Collateral Registry, which can be used in assessing loans from financial institutions.

This, as hoped, would increase these SMEs chance to assessing credits.

As regards the ‘Credit Reporting Act’, the law is to institutionalise credit information sharing between Credit Bureaus and financial institutions, and another other institution in the country that provide services on credit.

At present, there are two Credit Bureaus in Nigeria – XDS Credit Bureau and CR Services (Credit Bureau) Plc.

shakirudeen taiwo

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