The Credit Crunch : How the Use of Movable Collateral and Credit Reporting Can Help Finance Inclusive Economic Growth in Nigeria
Nigeria is an entrepreneurial economy with an estimated thirty seven million Micro, Small, and Medium-sized Enterprises (MSME) in the country, and their contribution to economic growth and job creation is significant. There are also a large number...
| Main Authors: | , |
|---|---|
| Format: | Working Paper |
| Language: | English en_US |
| Published: |
International Finance Corporation, Washington, DC
2017
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/821631489056930708/The-credit-crunch-how-the-use-of-movable-collateral-and-credit-reporting-can-help-finance-inclusive-economic-growth-in-Nigeria http://hdl.handle.net/10986/26275 |
| id |
okr-10986-26275 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-262752021-05-25T08:58:36Z The Credit Crunch : How the Use of Movable Collateral and Credit Reporting Can Help Finance Inclusive Economic Growth in Nigeria Central Bank of Nigeria International Finance Corporation FINANCE ECONOMIC GROWTH PERFORMANCE MANAGEMENT REGULATION MSME microfinance Nigeria is an entrepreneurial economy with an estimated thirty seven million Micro, Small, and Medium-sized Enterprises (MSME) in the country, and their contribution to economic growth and job creation is significant. There are also a large number of self-employed entrepreneurs who support themselves and their families by supplying goods and services to the economy. Many of these businesses have the potential to become bigger and more prosperous, but their growth is restricted for a variety of reasons. Access to finance has been singled out as a crucial prerequisite to the growth of these businesses. This report identified collateral as the missing link between the small-scale business sector and the financial institutions that could provide the necessary capital for them to grow. This means formal lending is virtually inaccessible for these small businesses and entrepreneurs, who instead rely on informal, unregulated, and unpredictable credit in order to expand their operations. To improve access to finance and promote inclusive economic growth, the Central Bank of Nigeria (CBN), in partnership with the International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets, has established the National Collateral Registry and is supporting the development of a modern credit reporting system in Nigeria. This new financial infrastructure will allow for increased use of moveable and reputational collateral to make it possible for more MSMEs to access financing through the formal sector. 2017-03-15T20:07:40Z 2017-03-15T20:07:40Z 2017 Working Paper http://documents.worldbank.org/curated/en/821631489056930708/The-credit-crunch-how-the-use-of-movable-collateral-and-credit-reporting-can-help-finance-inclusive-economic-growth-in-Nigeria http://hdl.handle.net/10986/26275 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo International Finance Corporation International Finance Corporation, Washington, DC Publications & Research Publications & Research :: Working Paper Africa Sub-Saharan Africa Nigeria |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
FINANCE ECONOMIC GROWTH PERFORMANCE MANAGEMENT REGULATION MSME microfinance |
| spellingShingle |
FINANCE ECONOMIC GROWTH PERFORMANCE MANAGEMENT REGULATION MSME microfinance Central Bank of Nigeria International Finance Corporation The Credit Crunch : How the Use of Movable Collateral and Credit Reporting Can Help Finance Inclusive Economic Growth in Nigeria |
| geographic_facet |
Africa Sub-Saharan Africa Nigeria |
| description |
Nigeria is an entrepreneurial economy
with an estimated thirty seven million Micro, Small, and
Medium-sized Enterprises (MSME) in the country, and their
contribution to economic growth and job creation is
significant. There are also a large number of self-employed
entrepreneurs who support themselves and their families by
supplying goods and services to the economy. Many of these
businesses have the potential to become bigger and more
prosperous, but their growth is restricted for a variety of
reasons. Access to finance has been singled out as a crucial
prerequisite to the growth of these businesses. This report
identified collateral as the missing link between the
small-scale business sector and the financial institutions
that could provide the necessary capital for them to grow.
This means formal lending is virtually inaccessible for
these small businesses and entrepreneurs, who instead rely
on informal, unregulated, and unpredictable credit in order
to expand their operations. To improve access to finance and
promote inclusive economic growth, the Central Bank of
Nigeria (CBN), in partnership with the International Finance
Corporation (IFC), a member of the World Bank Group and the
largest global development institution focused on the
private sector in emerging markets, has established the
National Collateral Registry and is supporting the
development of a modern credit reporting system in Nigeria.
This new financial infrastructure will allow for increased
use of moveable and reputational collateral to make it
possible for more MSMEs to access financing through the
formal sector. |
| format |
Working Paper |
| author |
Central Bank of Nigeria International Finance Corporation |
| author_facet |
Central Bank of Nigeria International Finance Corporation |
| author_sort |
Central Bank of Nigeria |
| title |
The Credit Crunch : How the Use of Movable Collateral and Credit Reporting Can Help Finance Inclusive Economic Growth in Nigeria |
| title_short |
The Credit Crunch : How the Use of Movable Collateral and Credit Reporting Can Help Finance Inclusive Economic Growth in Nigeria |
| title_full |
The Credit Crunch : How the Use of Movable Collateral and Credit Reporting Can Help Finance Inclusive Economic Growth in Nigeria |
| title_fullStr |
The Credit Crunch : How the Use of Movable Collateral and Credit Reporting Can Help Finance Inclusive Economic Growth in Nigeria |
| title_full_unstemmed |
The Credit Crunch : How the Use of Movable Collateral and Credit Reporting Can Help Finance Inclusive Economic Growth in Nigeria |
| title_sort |
credit crunch : how the use of movable collateral and credit reporting can help finance inclusive economic growth in nigeria |
| publisher |
International Finance Corporation, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/821631489056930708/The-credit-crunch-how-the-use-of-movable-collateral-and-credit-reporting-can-help-finance-inclusive-economic-growth-in-Nigeria http://hdl.handle.net/10986/26275 |
| _version_ |
1764461575313293312 |