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National Collateral Registry facilitates N1.2trn loan to 155,000 SMEs

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By Babajide Komolafe

The National Collateral Registry has assisted over 154,000 Micro, Small and Medium Enterprises (MSMEs) to access N1.2 trillion loans from 628 financial institutions.

The Central Bank of Nigeria (CBN) disclosed this in a report made available to Vanguard yesterday.

The NCR is an initiative of the CBN in collaboration with the International Finance Corporation (IFC) designed to foster financial inclusion and sustainable and inclusive economic growth.

The Central Bank of Nigeria, CBN, headquaters, Abuja

Among other things the NCR seeks to deepen credit delivery to MSMEs through enhanced acceptability of movable assets such as equipment, machinery, vehicle, tricycle, crops, livestock, account receivables, inventories, jewelleries, amongst others, as collateral for loans by financial institutions.

The report showed that the number of  MSMEs that have used their movable assets to obtain loans from financial institutions through the NCR rose  to 154,827 as at December 19, 2018  from 100,049 in the first year, 2017,  indicating increase of 54 percent. The report also showed that 22,251 of the MSMEs were female entrepreneurs.

Further breakdown showed that 146,777 of the borrowers were individuals, 3,416 were micro businesses, 2,169 were medium      businesses, 1,777 were small businesses and 687 were large businesses.

Lending under the NCR rose by 146 percent per cent to N1.2 trillion in 2018 from N487 million in 2017. The upsurge in lending activities, according to the CBN was due to the increase in the number of microfinance banks on the NCR portal as well as increased participation of deposit money banks and non-bank financial institutions.

As a result the number of participating financial institutions in the NCR rose to 628 in 2018 from 103 in 2017.

The number of participating Deposit Money Banks (DMBs) rose to 21 from three in 2017, microfinance banks rose to 551 from 96, Development finance institution rose to four (4)    from one(1), merchant banks rose four from one, finance companies rose to 13 from 2 while non interest bank rose to one from zero in 2017.

Analysis of lending by participating banks showed that DMBs led with N1.07 trillion, followed by Non-Bank Financial Institutions with N340.3 billion, Development Finance Institutions with N52 billion, MfBs with N21.6 billion, and Merchant Bank with N400 million.

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