What is it about?
The paper addresses the recent attempt by the Nigerian Central Bank to help Micro Small and Medium Scale Enterprises (MSMEs) in Nigeria access credit. It takes a critical look at the legal instrument which seeks to bring about this change and identifies gaps in the instrument, by measuring it against the US Uniform Commercial Code which is a paradigm legislation and one on which the legal instrument is largely based.
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Why is it important?
Nigeria's current economic recession, and its attendant effect on MSMEs have heightened credit concerns. The paper is timely as it addresses the gaps in the present legal instrument which may hamper the quality of the instrument in providing succor and easing liquidity challenges for MSMEs. It is the first paper to address the new legal regime on personal property security in Nigeria.
Perspectives
The objective of the Nigerian Central Bank is not only laudable but also imperative, especially if businesses will be able to access credit without the risk premium which lenders will often impose for want of collateral. It may be argued that Nigeria can make do with what has been promulgated until there is another wave of reforms. However, the need for a comprehensive reform of the law of personal property is underscored by the fact that law reforms in Nigeria happen only once in a blue moon. Hence, the paper is by no means merely academic but is of practical importance for policymakers and lawmakers alike.
Mr. Sanford U. Mba
Central European University
Read the Original
This page is a summary of: Towards Reforming Nigeria's Secured Transactions Law: The Central Bank of Nigeria's Attempt through the Back Door, Journal of African Law, January 2017, Cambridge University Press,
DOI: 10.1017/s0021855317000043.
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