The Development of Consumer’s Credit in Nigeria: Issues and Propects

This paper examined some views from analysts who expressed concern about the growth of consumer debt and its effect on the Nigerian economy as well as many other third world countries. Some analysts are afraid that the combination of increasing debt and higher interest rates has impaired the ability of households to meet their monthly financial obligations. The idea of Fostering effective credit administration in Nigeria in order to encourage proper credit management development will become landmarks victory over poverty in Nigeria is the observation of this paper. This was one of the reasons for the establishment of the General Assembly of Banks' Chief Executives (GABCE) in Nigeria. However, this paper looked at payment of interests as a percentage of disposable income have actually fallen since the end of the recession in 2001. Assessing Consumer Credit tells us imperative things about our economy. The paper also ex-rayed the capacity of some individuals to borrow effortlessly and refund those debts on time as agreed to stimulate the economy and growth. Consumers and Consumer Credit are the instrument and brainbox of the economy, when credit is unavailable, consumers will face foremost complications in borrowing. In this circumstance, consumers would consume less since they have less access to credit. For this reason, manufacturers will sell less, and produce less. The importance of a viable Consumer Credit System cannot be overemphasized. This paper hypothesized that certain identified factors militate against the development of a strong Consumer Credit System in Nigeria. It examined and analysed these challenges and exposed their negative roles in the development of a strong Consumer Credit System. It focused on strategies that can improve consumer access to credit facilities and concluded that there is need for a paradigmatic change to a global digital financial technology. It therefore made recommendations that can challenge Nigerian policy makers to improve on, or evolve a stronger Consumer Credit System. This Paper also explored that part of the consumer indebtedness story not explicitly related to credit based on real estate collateral, related to stocks and bonds or other financial collateral, or used for business purposes. In other words, it examined the domain of consumer credit. It is the saga of wealth creation in the middle class over time that has led to demand for a wider range of financial products, including completely new forms of credit. It is also the story of the evolution and regulation of financial institutions that have grown to supply those needs and desires. It is simultaneously a tale of growth and competition among these financial providers and of the consequent pressures to attract customers while reducing production costs. Today these competitive forces continue to contribute to the ongoing revolution in product offerings. Innovations such as credit scoring, risk-based pricing, Automated Electronic Credit Reporting Systems, product delivery through automated teller machines (ATMs) and more recently the Internet, and virtually instantaneous access to billions of dollars of credit worldwide illustrate a progression without an ending Human Satisfaction, as markets continue to evolve and as institutions plan and implement new financial services and delivery mechanisms. Even periodic financial crises are unlikely to slow this long-term trend. This paper was segmented into numbered sub-topics for clarity and objectivity.

International Consumer Protection law

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