REVIEW OF THE SECURED TRANSACTION IN MOVABLE ASSETS ACT 2017: CHALLENGES AND RECOMMENDATIONS

Abstract

The role of small and medium scale enterprises in the economic development of Nigeria cannot be overemphasized as they are very critical to the economy. However, they face a lot of constraints especially in terms of finance. Due to the clamour for the reform of Nigeria’s secured transactions’ law culminated in the enactment of the Secured Transactions in Movable Assets Act to stimulate responsible lending to small and medium enterprises. In addition to its general objective of providing and developing a framework guaranteeing access to credit secured by movable assets, the specific objectives of the Collateral Registry Act include: (i) establishing a National Collateral Registry; (ii) stimulating affordable lending to SMEs; (iii) facilitating the perfection and realisation of security interests in movable assets; and (iv) enhancing financial inclusion in Nigeria. This paper seeks a critical review of the Act, outline the challenges and make recommendations as way forward.