#EndSARS: CBN Decries Attacks On Movable Assets

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The Central Bank of Nigeria (CBN) has lamented the attacks on what it described as the ‘fabrics of Nigeria’s economy’ by protesting youths, decrying that some of the destroyed movable assets, were used as collateral for about N2tr credits given to micro, small and medium enterprises (MSMEs) in the last three years.

The Governor of the apex bank, Godwin Emefiele, said this at a virtual capacity building programme organised by the World Bank in collaboration with the CBN for judges and justices of Appeal Courts on Secured Transactions in Movable Assets and Credit Reporting Reforms.

He revealed that the Nigerian Collateral Register (NCR) registered household assets as collateral for credit in banks in place of immovable assets as part of CBN’s effort to widen credit delivery to MSMEs in the country.

The movable assets, according to him, include cars, motorcycles, fridges, television sets, sewing machines and furniture items, among others.

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The CBN governor said, “As at September, 30, 2020, 694 financial institutions comprising 22 Deposit Money Banks (DMBs), four Merchant Banks, five Development Finance Institutions (DFIs), 580 Microfinance Banks, 37 Non-Bank Financial Institutions, 43 Finance Companies, one Primary Mortgage Bank and two Non-Interest Financial Institutions, registered on the NCR portal.

“Based on 113,153 financing statements registered on the NCR in respect of movable assets offered as collateral, banks gave ₦1.80tr, $1.36b and €10.92m to 273,435 as credit to 262,904 individuals, 1,421 large, 4,260 medium, 1,433 micro and 3,417 small businesses.

“Some components of the foreign currency-denominated loans represent the much-needed capital inflows into the economy and this attests to the power of the NCR and indeed, the STMA-centric reforms, to engender economic development. Ultimately, it underlines our resolve to sustain the reforms and improve public appreciation, and especially judicial perception, of its potentials,” Emefiele stated.

It will be recalled that private businesses and homes were vandalised after hoodlums hijacked the #EndSARS protests.

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