The Senate has passed a Bill for an Act to provide for a framework for credit reporting and other related matters.
This followed the presentation of report on the Bill by Chairman, Committee on Banking, Insurance and other Financial Institutions, Sen. Rafiu Adebayo, and clause-by-clause consideration by the lawmakers at Tuesday’s plenary.
Adebayo had said that Credit Bureau Association of Nigeria (CBAN), a non-governmental organisation formed to promote credit reporting to expansion the Nigerian economy in line with global best practices, had existed.
“The association tends to maintain the confidentiality, accuracy and uses of data and the protection of credit bureau.
“In spite of the existence of these agencies, there is no legitimate framework guiding their operations.”
He said that as a result of the lacuna, the Bill sought to provide adequate guidelines for the operation and coordination of credit bureau in Nigeria.
“It also seeks to expand credit facilities to the larger segment of the Nigerian population that cuts across groups and corporate entities.
“It will also enable the production of effective and reliable database to establish the credit worthiness of individual groups and corporations in assessing credit in the financial sector, among others,” he added.
The Senate also passed the Bill for an Act to Provide for secured transactions, registration and regulation of security interest in moveable assets 2017.
The Bill seeks to facilitate financial inclusion in Nigeria, and also aims to enhance responsible lending to Micro, Small and Medium Scale Enterprises, among others.”
The lawmakers had agreed that the two Bills were important, especially in the business environment to enable Nigeria attract investors into the country.
“Once there is a very robust and effective credit reporting facility, it is going to be easy for creditors to assess information about any employment debtor,” they resolved.
In his remarks, President of the Senate, Dr Bukola Saraki, said the bills would go a long way in improving the lending environment for creditors to assess information about any country.
“All the researches have been done. The greatest impediment to economic growth is access to credit and by doing this, we have improved on that.
“This will make it easier for young entrepreneurs that want to borrow. It will also improve the culture and there will be incentives for borrowers to repay,” he said.
Saraki assured that the Senate would continue to do things that would improve the economy. (NAN)
NNL/OFN/OPI