By Our Correspondent
A German International Agency for Development (GIZ) in collaboration with the Central Bank of Nigeria (CBN) agency, National Collateral Registry (NCR), on Thursday advised owners of Micro, Small and Medium Enterprises (MSMEs), to approach banks for credit facilities to expand their business.
The organisations, gave ce in Abeokuta, Ogun State, at a Round Table Meeting with MSMEs, Artisans and farmers, on how they can access loans from financial institutions using their movable assets as collateral.
Addressing participants in Abeokuta, the GIZ Officer, Mr Afolabi Olawale, drawn from local government areas, said Ogun State, was chosen among the focal states to benefit from the organisation, which has its presence in over 170 countries of the world and collaborating in different sectors of the economic development.
Olawale, said the GIZ and the CBN's NCR, are at the meeting, to consolidate previous online discussions that they had with them on how to raise money to expand their respective businesses.
He said "Some of us here do not believe in taking loans for our businesses because of our nature and our experiences about borrowing money from banks and what they normally required.
"We are here today to break down barriers between financial institutions and MSMEs on access to credit facilities to expand your businesses.
"The NCR has created a particular infrastructure that can help you to get a loan using your movable assets like your machines, cars and others, as collateral facilities."
Speaking at the event, an officer of CBN, Mr Kazeem Owoade, said the regulatory bank, has identified some of the challenges facing MSMEs in getting finances for their Enterprise
Owoade said the CBN created the NCR to make access to loans easier for MSMEs, which is different from conventional business loan arrangements with financial situation institutions.
He explained that the CBN and the International Finance Corporation. (IFC), has established NCR online platform, where information is provided about collateral provided by MSMEs before obtaining loans saying all banks in Nigeria are on the platform.
Owoade said CBN to institutionalise the NCR, had through the National Assembly law, made the 'Secured Transaction in Movable Assets Act 2017," to protect both the financial institutions in the loan agreement.
He said, "The Act gives the banks security on the loan while also protecting MSMEs from being cheated because the platform contains detailed information about assets provided by customers in the loan agreement.
Owoade, who explained procedures involved in securing loans and benefits accruable to both the government and the MSMEs, enjoined them to approach their banks for the facility.
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