CBN Restore Fees on National Collateral Registry

The Central Bank of Nigeria has announced that in two months time, fees on the National Collateral Registry platform would be restored.

This, according to the apex bank will take effect from November 1, in a circular signed by the Director, Financial Policy and Regulation Department, Kelvin Amugo, titled, ‘Restoration of fees on the National Collateral Registry platform’, to all banks, other financial institutions and stakeholders in the financial service industry.

Last year April, moveable assets registered on the National Collateral Registry, NCR platform was worth N1. 26 trillion.

Part of the circular read, “The regulation on registration of security interests in movable property by banks and other financial institutions in Nigeria enabled the establishment of the NCR, which commenced operations in May 2016.

“This regulation was accorded legal backing by the Secured Transactions in Movable Assets Act, 2017.

“Section 22(2) of the Act requires the payment of fees for registration of movable assets used as collateral for accessing loans as well as other services provided by the NCR.

“However, the CBN, at inception, waived all payment of fees on the NCR platform to encourage usage by financial institutions.

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“The attainment of this objective has necessitated a review of the waiver.

“Consequently, banks, other financial institutions and the general public are to note that effective November 1, 2020, the CBN would be restoring the fees.”

The CBN said that financial institutions were expected to create post-paid accounts on the NCR platform for payment transactions.

The creation of this account would enable the institutions to make payments towards registration of interest on movable assets used as collateral for credit extended to MSMEs.

Other financial institutions were required to provide account details with correspondent banks to set up the post-paid account.