The Chartered Institute of Bankers of Nigeria Centre for Financial Studies (CIBNCFS), a subsidiary of The Chartered Institute of Bankers of Nigeria (CIBN), has concluded plans to organize a breakfast session on Collateral Registry Act: Pros and Cons for the Nigerian Banking Industry and Other Stakeholders.
The programme is slated for Thursday, September 28, at the Bankers House, PC 19, Adeola Hopewell Street, Victoria Island, Lagos.
Due to the imperative of addressing the financing gap in Nigeria’s Micro, Small and Medium Enterprises (MSMEs) Sector, the National Assembly and the House of Representatives passed into law the Secured Transactions in Movable Assets Act, 2017 (otherwise known as the Collateral Registry Act) in May, 2017.
The Act, already signed by the executive, is designed to afford MSMEs the opportunity of acquiring loans using movable assets as collateral from financial institutions.
While this is indeed a welcome development, apprehensions among stakeholders are rife regarding the implications of this Act on the current high level of Non-Performing Loans (NPLs) in the industry amongst all other risks financial institutions are exposed to in the country.