Osinbajo signs new laws to allow Nigerians use freezer, generator as collateral for bank loan

Acting President Yemi Osinbajo has signed two new laws that would help facilitate access to more affordable credit facilities for businesses in the country.

In a statement on Tuesday, Laolu Akande, Osinbajo’s spokesman, listed the acts to include the Secured Transactions in Movable Assets Act, 2017 (otherwise known as Collateral Registry Act) and the Credit Reporting Act, 2017.

He said the new laws were part of the federal government’s reforms aimed at easing business operations in the country.

TheCable understands that the new laws will empower Nigerians to use their reputation, generators, deep freezers, school certificates, farm produce such as rice and beans, and many unconventional properties.

The collateral register has been in the works for a number of years, with expectations that it would be signed into law early in 2016.

Akande added that while the Collateral Registry Act ensures that Micro, Small and Medium Enterprises (MSMEs) could register their movable assets and use same as collateral for accessing loans, the Credit Reporting Act provides for credit information sharing between Credit Bureaus and lenders and other institutions that provide services on credit.