20 planes registered as collateral, says NCR

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20 planes registered as collateral, says NCR

Twenty privately owned planes have been registered as movable collateral to be seized from their owners in the event they default in meeting their loan obligations to their creditor institutions.

Addressing Finance Correspondents on the activities of the NCR in Abuja, the Registrar of the National Collateral Registry (NCR) Alhaji Mohammed Mainasara disclosed that these 20 planes form part of the 65,370 registered moveable assets on the NCR’s portal as at 20th March, 2019.

Other items registered are 17,657 documents of title/negotiable instruments; 100 boats;13 intellectual properties; two minerals (undisclosed); 417 plants and machinery; 218 securities; 13,425 motor vehicles; 1,582 farm products; 1,166 deposit accounts; 10,579 consumer/household goods among others.

Alhaji Mainasara also revealed that the number of registered financial institutions on the NCR portal has grown to 630 as at 20th March, 2019. According to him, 21 deposit money banks (DMBs); 552 Microfinance banks; four Merchant banks; four Development Finance Institutions (DFIs); 34 finance companies; one non-interest bank and 14 non-bank financial institutions have all been registered on the portal.

The need for collateral registry Mainasara said has become necessary because of the N7.4 trillion financing gap plaguing MSMEs. According to him, N10.1 trillion capital is required by MSMEs but only N2.7 trillion has been raised so far. This comprises “the total capital base/seed fund of DBN, BoI, BoA, NMBM, NEXIM, NIRSAL, Agriculture Credit Guaranteed Scheme. (ACGS), Commercial Agricultural Credit Scheme (CACS), Re-discounting and Refinancing Facility (RRF), DMBs and MFBs.”

A collateral registry is a financial infrastructure for Micro Small Medium Enterprises (MSMEs) lending, warehousing “a notice board registry for collaterals with a publicly available database of security interest in moveable assets registered for the purpose of being used as collateral to obtain facilities from financial institutions.

A collateral registry allows borrowers to provide their creditworthiness and lenders to assess their priority interest in potential claims against particular collateral. A collateral registry is expected to improve both access to finance and induce prompt repayment by providing a win-win for the borrower and lender simultaneously.

However, Alhaji Mainasara lamented that the NCR is faced with the twin challenges of “lack of funds to implement nationwide awareness campaign strategy on NCR and low usage of the NCR portal as a result of reluctance of financial institutions to appreciate the benefits of moveable assets-based lending.

 

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