Secured Transactions in Movable Assets Act, 2017.

This Act provides for creation of secured transactions, and registration and regulation of security interests in movable assets (all security interests in movable assets created by an agreement that secures payment or the performance of an obligation). The objectives of this Act are to: (a) enhance financial inclusion in Nigeria; (b) stimulate responsible lending to micro, small and medium enterprises; (c) facilitate access to credit secured with movable assets; (d) facilitate perfection of security interests in movable assets; (e) facilitate realization of security interests in movable assets; and (f) establish a collateral registry and provide for its operations. The Act does not apply to the creation or transfer of an interest in land other than account receivables. The Act defines rights and duties of a grantor, borrower and creditor.
A security interest is created by a security agreement between a grantor and creditor. A security interest shall be created to the extent of the rights that the Gran tor has in the collateral. A security interest created in tangible property before they were commingled in a mass or product continues in the mass or product. A security interest is perfected when a financing statement in respect of that security interest has been registered in the Collateral Registry established under this Act. he Collateral Registry shall: (a) receive, register and store information about security interests in movable assets; (b) provide access to persons who may seek information on security interests from the Collateral Registry; and (c) perform such other functions as may be prescribed by regulations made under this Act. The priority between perfected security interests in the same collateral shall be determined by the order of registration. A creditor may enter into an agreement to subordinate its priority in favour of any other claimant.