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The Registrar, National Collateral Registry (NCR), Bulus Musa, has revealed that over N16.6 trillion in credit has been collateralised on the registry’s portal so far.
This was even as he revealed that about 752,000 Nigerians have been registered on the NCR portal.
Musa disclosed this to newsmen during a town hall meeting on the sensitisation of the use of Secured Transactions in Movable Assets (STMA) Act 2017 which was organised by the Development Finance Department of the Central Bank of Nigeria (CBN) in collaboration with the NCR in Lagos on Thursday.
The CBN set up National Collateral Registry (NCR) to assist them obtain loans from financial institutions to boost their business, using movable assets as collateral.
Musa, who is also an Assistant Director at the CBN, said, “We have captured about 752,000 and credit that has been granted or collateralized currently stands at N16.6 trillion on the NCR portal”.
According to him, 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.
He further stated that the CBN is concerned about catalysing the economy, the growth of the small scale industry.
Explaining what the STMA does, Musa said it is a secured transaction in movable assets.
“This means we want to use the movable assets as collateral for granting credit. What the small scale industries need to do is go to their bank, tell your bank that I do not have landed properties but I have motorcycle, vehicle, jewelry, an account receivable from a reputable company, inventory and discuss with them.
They will register these documents on the NCR and when it is registered on the NCR, it gives that bank the priority over these assets and they give you the amount you need for credit but you know payment is still with you”, he said.
When quizzed on whether there are plans to set up a Dispute Allocation Committee, Musa revealed that there are plans to do that very soon.
