Harmonising Secured Transactions Law in an Emerging Economy (Re CBN Collateral Registry Regulations)

Abstract

The author examines the extent to which access to credit can be achievable for individuals and SMEs in an emerging economy. Here, the focus is on Nigeria, and different ways have been identified to reform its secured lending environment by analysing the recently passed Collateral Registry Regulations (CRR) by the CBN, and how useful it will be for business ventures and their creditors. The CRR is designed to provide for the use of moveable property as security, and also, to introduce modern methods of achieving this goal through the process of harmonising the secured transactions law as recognised in the lending sector. These secured transactions laws can be found in various statutes at State and Federal level with complicated provisions and uncoordinated registries. The CRR aims to harmonise the operations of these transactions to achieve predictability, transparency and consistency so long as they perform similar economic functions. This Article sets out and explains some of the recommendations outlined in the Cuming Report 2004 and the Draft Law 2009, and how some of these recommendations could be introduced and adopted by the CRR. Most importantly, international soft laws such as the EBRD Model Law and its Ten Core Principles, and UNCITRAL Legislative Guide on Secured Transactions have provided additional foresight in this quest for reform. The CRR provisions have been methodically benchmarked against these initiatives in the hope of producing a contemporary secured transactions law.