In Nigeria, there are an estimated 37 million micro, small, and medium-size enterprises (MSMEs) and their contribution to economic growth and job creation is significant. However, many of these smaller businesses struggle to gain access to the capital they need to grow and prosper since they lack traditional collateral such as land and buildings.
In May 2016, the Central Bank of Nigeria launched a modern online collateral registry with the support of the World Bank Group. The registry will allow low-income people and small-scale entrepreneurs to secure loans against movable assets such as machinery, livestock, and inventory.
“This is a major achievement to help improve access to finance for MSMEs and more broadly the financial inclusion agenda in Nigeria,” said Sebastian Molineus, Director of the World Bank Group’s Finance and Markets Global Practice.
For more on this story visit the following link: Nigeria’s New Collateral Registry Aims to Increase Access to Finance for Small Business
Source: World Bank