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.