Impediments to the Development of a Strong Consumer Credit System in Nigeria

Abstract

Consumer credit is debt that is obtained by persons who intend to spend the money immediately. Assessing consumer credit tells us imperative things about our economy. If consumers have the capacity to borrow effortlessly and refund those debts on time, then the economy should be stimulated and we will have growth. Consumers 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 over emphasized. This paper hypothesizes that certain identified factors militate against the development of a strong consumer credit system in Nigeria. It examines and analyses these challenges and exposes their negative roles in the development of a strong consumer credit system. It focuses on strategies that can improve consumer access to credit facilities and concludes that there is need for a paradigmatic change. It therefore makes recommendations that can challenge Nigerian policy makers to improve on, or evolve a stronger consumer credit system.