The Central Bank of Nigeria (CBN) has issued guidelines for the regulation and supervision of Credit Guarantee Companies (CGCs) in Nigeria.
The apex bank disclosed this in a circular titled ‘Exposure Draft of Guidelines for regulation and supervision of Credit Guarantee Companies In Nigeria’ on August 4, 2021.
The Circular which was addressed to banks, other financial institutions and stakeholders in the financial services industry explained that the guideline would help improve access to lending for micro, small and medium scale enterprises (MSMEs).
CBN also stated that: “The guidelines, which would provide a regulatory basis for the operations of credit guarantee companies in Nigeria, seeks to ultimately reduce credit risk, stimulate lower interest rates on loans and complement other initiatives of regulatory outhorities aimed at stimulating lending to MSMEs.
“An exposure draft of the guidelines Is hereby issued for comments and observations. The document may be accessed from the CBN’s website.
“We would be pleased fo receive comments addressed to the Director, Financial Policy and Regulation Department within three (3) weeks from the date of this circular. Soft copies of your comments may also be forwarded to PolicyandRegulationDivision@cbn.gov.ng.”
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