CBN’s collateral registry generates N1.2 trillion loans in two years

Central Bank of Nigeria (CBN)’s National Collateral Registry (NCR) has generated N1.264 trillion credit to the micro, small and medium enterprises (MSMEs) and individuals in the nation’s economy within two years, its Registrar, Mohammed Mainasara, has said.

The NCR, a creation of the apex bank’s Development Finance Department in collaboration with the International Finance Corporation (IFC) commenced operation in 2017 following its Establishment Act – the STMA Act of 2017 by the National Assembly.

It had the mandate of closing the credit gap in the MSME sector through the creation of soft-collaterised credit to operators of the sector and individuals. 

Reviewing its operations during a media briefing in Abuja yesterday, Mainasara said the NCR has made available N1.264 trillion to MSMEs, individuals and even large businesses as at March 20, 2019. 

He gave a breakdown of the distribution of credits and their beneficiaries as, individuals (157,078 in 37,444 deals worth N135.419b), large businesses (comprising 735 and N871.764b) and medium businesses (2,279 in 2, 244 deals worth N230.984b).

He explained that micro businesses benefited through 3,457 ventures in 1,080 financing deals worth N 5.748b, while 1,908 small businesses benefited through 1,788 financing deals amounting to N20.401b. 

In all, Mainasara said some 165,456 clients engaged in 43,270 businesses worth over N1.264 trillion from the NCR window created to fast- track credit inflow in the Nigerian economy. 

He added that of beneficiaries, 24,318 women who engaged in 11,708 financing deals received N45.183b. 

Under the NCR, individuals and businesses could access credit from banks with their movable or immovable assets duly registered with the Collateral Registry.

Such assets include automobiles, phones, laptops and several household items, boats, title documents and negotiable instruments, farm produce, electronics television, refrigerators and intellectual property, among others.  

He, however, lamented the huge MSME financing gap in the country, saying while the sector requires N10.1 trillion, only N2.7 trillion is available, leaving a gap of N7.4 trillion.