The Central Bank of Nigeria (CBN) yesterday released guidelines for registration and supervision of Credit Guarantee Companies (CGCs) in Nigeria.
This is contained in a circular made available to BusinessToday Online by Ibrahim Tukur, CBN’s Director, Financial Policy and Regulation Department, addressed to Commercial Banks, Other Financial Institutions and Stakeholders in the Financial Services Industry.
He said that the guidelines were in furtherance of effort to improve lending for Micro, Small and Medium Enterprises (MSMEs).
According to him the guidelines seek to ultimately reduce credit risk, stimulate lower interest rates on loans and complement other initiatives of regulatory authorities aimed at stimulating lending to MSMEs.
The guidelines further reads: “An exposure draft of the guidelines is hereby issued for comments and observations. The document may be obtained from the CBN’s website, www.cbn.gov.ng,’’ the director said.
He also said that comments and observations on the guidelines should be sent to the regulator within three weeks.
