Two bills to help Nigerian access fordable credit has on Tuesday been signed into law by the Acting President, Prof. Yemi Osinbajo. The bills are the Secured Transactions in Movable Assets Act 2017, otherwise known as Collateral Registry Act, and the second is the Credit Reporting Act 2017.
In a statement isued by the spokesman to the Acting President, Laolu Akande, credit as critical to economic growth as it is the motor for driving private sector development. The spokeman added that “more than 70 percent of private enterprises, typically micro, medium and small enterprises, have limited or no access to credit as credit applications get rejected due to insufficient credit history and information for the lender to use to make a reasonable judgement as well as unacceptable collateral.” For this, medium and small scale enterprises with limited assets are shout out from accessing credit facilities from the banks.
However, the new acts are meant to address these challenges and make it easier for small scale businesses to access credit which in turn will grow the national economy.