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The Central Bank of Nigeria (CBN) has released guidelines for registration and supervision of Credit Guarantee Companies (CGCs) in Nigeria.
The guidelines are contained in a circular issued on Tuesday by Ibrahim Tukur, CBN’s Director of 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 effort 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,’’ Tukur said.
He urged stakeholders to send their comments and observations on the guidelines within three weeks.