Lending: CBN simplifies collateral requirements for SMEs

Central Bank of Nigeria has unveiled plans to simplify the collateral requirement for lending to Micro, Small Medium-Scale Enterprises.

This move, according to the Director, Development Finance Institution, CBN, Paul Eluhaiwe, will enable the MSMEs to use moveable collaterals to secure credits from financial institutions.

Eluhaiwe, who said this while addressing journalists at the end of the MSME financing conference and D-8 workshop in Abuja, added that the policy would commence next year.

He said the initiative became imperative since most banks depended on fixed collateral security to lend to the MSMEs.

Working with the International Finance Corporation, he said the CBN would put in place strategies that would ensure the successful implementation of the initiative.