Section 2: Scope

(1) This Act shall apply to:
(a) all Security Interests in movable assets created by an agreement that secures payment or the performance of an obligation;
(b) a person who is a Creditor, Borrower or Grantor under this Act; and
(c) every public registry established by anyAct of the National Assembly to co-ordinate or warehouse or oversee transactions in movable assets in Nigeria shall be operated in a manner that creates automated interface between such a registry and the National collateral Registry with a purpose to ensuring and guaranteeing that the registry is made accessible through, by, and from the National Collateral Registry.
(2) This Act shall not apply to:
(a) any right of set-off;
(b) the creation or transfer of an Interest in land other than account receivables; and
(c) any interest created by a transfer, assignment or mortgage in movable property governed by a law for which a registry has been established with regards to ships and aircrafts.
(3) Nothing in this Act shall prevent the creation of security interest in the form of charges by companies registered under the Companies and Allied Matters Act.
[Cap C20 LFN. 2004]