Secured Transactions in Movable Assets Act
Act · Finance
An Act establishes a legal framework that allows individuals and businesses to use movable assets like equipment and livestock as collateral for loans. It targets small and medium enterprises, entrepreneurs, farmers, and financial institutions to expand lending opportunities. This enables more Nigerians to access credit without relying on real estate.
What Is This Policy?
Establishes a legal framework allowing individuals and businesses to use movable assets (equipment, inventory, receivables, livestock, and intellectual property) as collateral for loans, dramatically expanding access to credit beyond land and buildings. Constitution of the Federal Republic of Nigeria 1999; Companies and Allied Matters Act; Banks and Other Financial Institutions Act (BOFIA); Hire Purchase Act; UNCITRAL Legislative Guide on Secured Transactions; National Collateral Registry Regulations (CBN)
SMEs and entrepreneurs who lack real estate collateral Farmers and agribusinesses using equipment and livestock as security Financial institutions seeking to expand their lending portfolio
Who Does It Target?
Small and medium enterprises (SMEs), traders, and agricultural producers using movable assets as collateral. Banks, microfinance institutions, and development finance institutions extending secured credit. The National Collateral Registry (NCR) as the registration body. Legal practitioners, insolvency practitioners, and courts.
What Does It Aim to Achieve?
Enable Nigerians to access credit using movable assets as collateral Reduce the collateral barrier that excludes millions from the formal financial system Establish a national collateral registry for transparent, searchable security interests
Key Features
Collateral Registry: National online registry for registering security interests in movable assets Broad Asset Coverage: Covers equipment, vehicles, inventory, receivables, crops, livestock, and intellectual property Priority Rules: Clear legal rules on the priority of competing creditors over the same asset Enforcement Framework: Streamlined enforcement process for creditors when borrowers default
Current Status
How to Access
Borrowers offer movable assets as collateral; lenders register the security interest on the National Collateral Registry Asset ownership documentation Registration of security interest on the National Collateral Registry Loan agreement from a participating financial institution Application method: National Collateral Registry – ncr.gov.ng | Participating banks and MFBs
Important Terms
Registered security interests take priority over unregistered ones in case of default Borrowers retain possession and use of pledged assets unless they default Default may lead to asset seizure through the streamlined enforcement process
Impact & Metrics
Estimated to unlock over ₦2 trillion in previously excluded collateral, potentially transforming SME access to finance across Nigeria.
Official Resources
Website: ncr.gov.ng Contact: Central Bank of Nigeria | National Collateral Registry This policy summary is for informational purposes. For official and legal details, refer to the cited Act or Bill and official government sources.
Legal Framework
Constitution of the Federal Republic of Nigeria 1999; Companies and Allied Matters Act; Banks and Other Financial Institutions Act (BOFIA); Hire Purchase Act; UNCITRAL Legislative Guide on Secured Transactions; National Collateral Registry Regulations (CBN)