The Central Bank of Nigeria (CBN) has restated the importance of the National Collateral Registry (NCR) in efforts to get Nigerian banks’ attention to support Micro, Small and Medium Enterprises (MSMEs).

At a three-day workshop with the theme “The Secured Transaction and National Collateral Registry As a Tool for Deepening Access to Finance MSMEs,” the apex bank maintained that MSMEs are the engine room for economic growth.

The workshop was organised by the Bankers Committee’s sub-committee on Economic Development, Sustainability and Gender for MSME desk officers in Nigerian banks in conjunction with the CBN, NCR and the IFC/World Bank.

According to the CBN, the lender of last resort, MSMEs remain the vehicle for job creation, tools for poverty alleviation and wealth creation for any country’s economy.

CBN Director, Development Finance Department, Dr. Mudashiru Olaitan, said the workshop was organized to keep the industry operators informed about efforts being put in place to assist in MSME financing through the establishment of NCR.

“There are about 37 million MSMEs in Nigeria and most of them have no access to financing, this has created a huge gap and thus the reason for the establishment of NCR to facilitate credit with movable assets,” he said.

He enjoined participants to use the opportunity the workshop provides to acquaint them with the process and take advantage of the coming on board of NCR to improve their lending to MSMEs.

The Chairperson of the sub-committee on Economic Development, Sustainability and Gender of the Bankers’ Committee, Mrs. Bola Adesola, noted that the NCR, which is a form of Modern Secured Collateral Registries; has increased the availability of credit and reduced the cost of credit globally.

These registries, she said, provide the basis for free-flowing credit markets, reducing the potential losses lenders face from non-payment, ultimately resulting in positive dramatic economic impact.

“Lending against movable assets is not very widespread in banking in Nigeria. While the CBN Regulation on registration of security interest in movable assets and NCR are meant to provide regulatory and institutional framework for movable asset lending, the lack of awareness by key banking operatives will render the platform ineffective.”