The Central Bank of Nigeria on Tuesday released guidelines for registration and supervision of Credit Guarantee Companies in Nigeria.
The guidelines are contained in a circular by Ibrahim Tukur, CBN’s Director, Financial Policy and Regulation Department and addressed to commercial banks, other financial institutions and stakeholders in the financial services industry.
Tukur said that the guidelines were in furtherance of efforts to improve lending for Micro, Small and Medium Enterprises (MSMEs).
He said that 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.
A document obtained from the CBN read in part: “An exposure draft of the guidelines is hereby issued for comments and observations”
The director, however, urged all stakeholders to send their comments and observations on the guidelines within three weeks from the date issued.