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The Central Bank of Nigeria (CBN) has partnered with a Ghanaian software and database management company, Bsystems Limited, to establish the National Collateral Registry (www.ncr.gov.ng), an online collateral registry system developed to improve access to finance for Micro, Small and Medium Enterprises (MSMEs).

According to the CBN, the NCR will usher in a secured lending regime in the country by minimizing the risks associated with lending to small businesses. It will encourage Nigerian commercial banks and microfinance banks to accept movable assets as security for loans.

The CBN had introduced the Central Collateral Registry Regulation in September 2014 in partnership with the International Finance Corporation (IFC), which developed the framework and has been promoting it in developing countries to broaden access to credit, particularly for MSMEs.

The Regulations provide a framework for businesses without land or building property to use movable assets as collateral for loan facilities. Under the framework, small businesses get to register any movable asset such as household appliances, vehicles, laptops, among others, as collateral with the NCR in order to secure credit from lenders.

Nigeria is the fourth country in sub-Saharan Africa to establish a Collateral Registry System after Ghana, Liberia and Malawi. Bsystems has been a partner with the IFC in developing and installing Collateral Registry systems in sub-Saharan Africa.
 
Experts believe that movable asset-based lending has had significant impact in South America and other regions by facilitating increased access to business loans.