02 Aug NCR Education and awareness working group meeting
A CBN Initiative
Supported by IFC
The meeting began with the Welcome Address given by Mr. Tunde Popoola, Chairman of CBAN. He stated that He was a co-chairman alongside with the director of SMEDAN, the project was an initiative of CBN and IFC and the inaugural meeting was to come up with strategies on how to sensitize the public on credit reporting and collateral registry.
Remarks were made by Luz Maria Salamina, Lead Credit Bureau Specialist Sub-Saharan Africa. She appreciated the CBN for its commitment to the project and noted that there were 3 main objectives with the CBN: to review regulations, to incorporate the credit bureaus in the reviews and to bring capacity building for stakeholders. She also noted that it was required for all to think about the most innovative ways to educate the public about the initiative
Shortly after, a formal address was given by the Deputy Governor Financial System Stability, CBN represented by Barrister Udofia A. Obot. He read the opening address of the DG. He stated that the project was another move of the CBN to promote its financial inclusion policy and improve flow of credit to the MSMEs. Also, he stated that the lack of access to financing was noted and that the success of collateral registries for moveable assets in other countries compelled the CBN to establish such in Nigeria.
Furthermore, he noted the exclusion of a considerably large number of MSMEs operators from formal financing in Nigeria, which has created the need for a collateral registry. He believed that the economic progress of China could be traced considerably to their use of collateral registry, which could be replicated in Nigeria.
The challenge of the SMEs Credit Guarantee Scheme was acknowledged as well as the need to enact an enabling Lending Act by the National Assembly (as it obtains in Ghana). He concluded with reiterating the need for education and awareness creation to promote a paradigm shift favourable to all stakeholders.
The first presentation of the day on Nigeria Credit Reporting was presented by Luz Maria Salamina where she illuminated the modalities of Nigeria’s Credit Reporting system from inception to its present status.
After the presentation, remarks were made by Sir. Steve Nwadiuko, Deputy Director, Banking Supervision Department (CBN). He briefly described the journey so far which led to the establishment of the Credit Risk Management System and Credit Bureaus. He reiterated the importance of financial inclusion for credit information sharing and the regulatory duties of CBN in the operations of financial bodies in the country, citing as an example the requirement of MFBs to register with at least two credit bureaus.
The second presentation was on the National Collateral Registry Project and was presented by Mr. Ubong Awah, Project Manager, Nigeria’s Financial Infrastructure Program after which the Registrar, National Collateral Registry Mr. Mainasara Muhammed stated that the project would bridge the gap, which would address the lack of collateral issues. Also, he mentioned that the CBN had provided all required resources to kick-start the project.
The last presentation was on Credit Reporting and Collateral Registry Education and Awareness Campaign by Mr. Nn’meka Maduegbuna, CEO C & F Porter Novelli where he stated the various strategies which would be utilized to launch the campaign nationwide.
In conclusion, it was noted that the project was primarily for the grassroots as such there was a need to also involve institutions such as state ministries, local governments, places of worship etc.