Secured Transactions in Moveable Assets Act, Company Charges and Funding Micro, Small and Medium Enterprises under Nigerian Law

摘要

The clamour for the reform of Nigeria's secured transactions' law has culminated in the recent enactment of the Secured Transactions in Movable Assets Act to stimulate responsible lending to micro, small and medium enterprises (MSMEs), among other objectives. This article evaluates the impact of the act, in particular how it addresses the problems associated with the common law system that made it difficult for small business entities to access loans and other credit facilities. The article further examines the implications of the autonomy the act gives to companies to continue to grant charges pursuant to the old system. The author contends that, despite the act's obvious similarity to reformed systems of personal property security laws (reform now being championed by the UN Commission on International Trade Law), expectations of it meeting its key objective of stimulating credit to MSMEs may be misconceived.