CBN releases guidelines for regulation, supervision of CGCs in Nigeria

The Central Bank of Nigeria (CBN) on Tuesday, released guidelines for registration and supervision of Credit Guarantee Companies (CGCs) in Nigeria.

The guidelines are contained in a circular 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.

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.

“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 urged stakeholders to send their comments and observations on the guidelines within three weeks.