There is, it is just only for those peope with genuine source of income, expecially salary earners.. As it is gan, they still owe the bank on credit facility given to them, some dont understand the credit circle while some would spend the initial avail funds and drops the card somewhere.

UncleAyo:
Why is Nigeria not using the credit card system? Are Nigerians less human?

There is also mobile checking in other countries where you can use a mobile phone to cash a check by just taking the picture of the check.

Because the average Nigerian is a thief!!! Any system that you bring would be circumvented. Those currently running Nigeria are a true reflection of the people they govern

Twoclans:
Go and ask Ecobank that tried something similar some years back how they ended .

In premium tears.

Best to spend only that which you have instead of living on credit.

Nupe people will take the credit card and use it to marry wives.. Mchew.

Ordinary quick loan we never pay finish na credit card we wan use, all the fintech companies go just run down

Credit card is type of unsecured loan. With no securities backing the loan amount, the risk of lenders not getting their money back is higher.

Now, risk cannot be eliminated, it can only be managed or minimised. And with nothing in place to minimise the risks of defaults, sadly it will be virtually non existent in Nigeria for now.

Things used here to minimise risks usually include borrowers to demonstrate

1) proof of places lived spanning several years ( To be double sure you won't runaway)..utility bills, payslips, electoral roll, bank statements to that address.

2) pay slips and bank statements- to determine your income and based on that, the (un) likelihood that you can afford repayments.

3) information on your outgoings/ expenses to further buttress point no 2.

4) Credit history, whether you have any current debts, your history of paying those ( previous defaults, their frequency etc) ie how you have behaved in the past with other people. If you have no history, you are riskier.

In summary, the average Nigerian will have access to Credit when they can demonstrate that their are credit worthy.

So let's be honest, how many people can demonstrate the points I have listed above ( honestly without fudging anything?)

As someone mentioned, with unemployment at the current level, it is reasonable to expect that MOST will default.

With high levels of inflations, interest rates on the credit cards will not only carry a risk premium but also an inflationary premium meaning the repayments will be higher and thus adding to the financial difficulties of the holder.

Nigeria isn't ready for such on wider scale just yet. Too many unresolved underlying issues at present.

An average Nigerian is so dubious, self centered, and lacks integrity.

A month ago i loaned two friends out of compassion 20k and 30k each. I can afford to let go this amount but not at the moment as i am also broke.

Its more than a month now and i am yet to get my money back. I have called and sent whatsapp messages but all to no avail.

If friends that i considered close could do this to me, imagine what financial firms go through in the hands of Nigeria.

No reasonable nigeria bank will offer credit card. Even if they will, it will be only for 1% of the 1%. We are the architect of our own problem.

aremuforlife:

75% of us always look for loopholes to commit crimes.
A Nigerian collected iPhone 12 on credit and about #2m I'm dubai and japa back to Nigeria

Ordinary N5,000 someone will collect as loan some people will decide not to repay back their loans. Nigeria Banks don't like stress.

9japride:
Credit card system is very good and it discourages fraud. But those wicked entities in the corridors of power who love to see people suffer won't allow it to work. They don't want the common man to measure shoulder with them. For example with a credit facility anyone can get latest phone, car etc. In addition, we need to develop our social security number system. But due to mischievous ways of those in power, they won't allow it to work. If done properly the security situation will be reduced more than 50%. Those in power know exactly what they are doing, they all travel out and see how things are done in other countries. To me, its just pure black man wickedness and nonsense attitude. It pains me a lot that with all the wealth in the country, people can't just enjoy it fully but just a few numbers of privilege one's that are enjoying the goodies meant for everyone.

Lol. It's unfortunate how people think.
So if you get a credit card you'd use it to buy latest iPhone?
Never use loans unless it's for an investment.

Nigerian banks issue credit cards to high net worth individuals in Nigeria. We do have credit cards, but not for everyone. Unlike in the Western world where a cleaner can obtain a credit card limited to his or her ability to pay.

A majority of the population is living under the poverty line thus the inability for products like credit cards, a poor man has no credit rating and it's not necessarily about the trustworthiness of Nigerians but we have a very small upper middle class that some of these things are meant for. Besides our government is already in enough debt.

UncleAyo:
Why is Nigeria not using the credit card system? Are Nigerians less human?

There is also mobile checking in other countries where you can use a mobile phone to cash a check by just taking the picture of the check.

Our credit rating is low, people borrow as low as N10,000 from financial houses and will not pay back.

Op, too much credit card yahoo/fraud and a weak judiciary system right now. It will happen but be patient. Our banks, internet security are making steady progress joining the 21st century. The CBN is trying o.

Western Union, MoneyGram, others to start payment of forex remittances to Nigerians Friday — CBN
The new policy allows beneficiaries of remittances to receive inflows in foreign currency through their bank or into their domiciliary account.

By Ayodeji Adegboyega December 3, 2020
https://www.premiumtimesng.com/news/top-news/429281-western-union-moneygram-others-to-start-payment-of-forex-remittances-to-nigerians-friday-cbn.html

Here's one example of the yahoo industry.

Video Of Naira Marley Arriving Court Today For His Alleged Cyber Fraud Trial - Celebrities - Nairaland
https://www.nairaland.com/6823501/video-naira-marley-arriving-court

Some banks offer this but it has to be a salary account..

I have been using card for 6 years now. Maybe u are not credit worthy that's why u are not aware. My credit card limit is even 300k

People go chop gbese die and fraud go plenty

aremuforlife:

75% of us always look for loopholes to commit crimes.
A Nigerian collected iPhone 12 on credit and about #2m I'm dubai and japa back to Nigeria

90% of Nigerians. Na wetin dey kill us be that. Honesty far from Nigerians.

Twoclans:
Go and ask Ecobank that tried something similar some years back how they ended .

Lol..
They should allow only the rich Nigerians to use cc.

UncleAyo:


What's your bank? I have a dom account but never been offered such.

access bank does. jus dial *901*14# they will show if one is eligible

The problem was caused by the Hausa-Fulani hegemonists following the rejection of National identification cards in 1979
It is a difficult problem to run a credit card scheme without National identity card of individuals.
The banks in Nigeria will open up once the integrity of National ID is established.

Credit card will only work in a country with low unemployment rate...

Cus they believe whatever you owe...you will pay

Countries that operate in this level

When you are out of jobs..you can get another in less than 24 hours

When you are out of job ..you get government assistance till you secure back a new job(Canada)

You get a relief grants when any disaster occur...

Lol, they do.

You just haven't been considered worthy..

hustla:


No one was forced na

We know but regulation is needed.

Anything shouldn't go if we want an organized society.

We have desperate and hapless people in Nigeria due to the state of the economy for years now, so government need to protect these people, else these loan apps will drive some into crime just to pay back the ridiculous interest and you may likely be the victim of these crimes.

UncleAyo:
Why is Nigeria not using the credit card system? Are Nigerians less human?

There is also mobile checking in other countries where you can use a mobile phone to cash a check by just taking the picture of the check.

Because Nigeria is a failed state

shaybebaby:
Credit card is type of unsecured loan. With no securities backing the loan amount, the risk of lenders not getting their money back is higher.

Now, risk cannot be eliminated, it can only be managed or minimised. And with nothing in place to minimise the risks of defaults, sadly it will be virtually non existent in Nigeria for now.

Things used here to minimise risks usually include borrowers to demonstrate

1) proof of places lived spanning several years ( To be double sure you won't runaway)..utility bills, payslips, electoral roll, bank statements to that address.

2) pay slips and bank statements- to determine your income and based on that, the (un) likelihood that you can afford repayments.

3) information on your outgoings/ expenses to further buttress point no 2.

4) Credit history, whether you have any current debts, your history of paying those ( previous defaults, their frequency etc) ie how you have behaved in the past with other people. If you have no history, you are riskier.

In summary, the average Nigerian will have access to Credit when they can demonstrate that their are credit worthy.

So let's be honest, how many people can demonstrate the points I have listed above ( honestly without fudging anything?)

As someone mentioned, with unemployment at the current level, it is reasonable to expect that MOST will default.

With high levels of inflations, interest rates on the credit cards will not only carry a risk premium but also an inflationary premium meaning the repayments will be higher and thus adding to the financial difficulties of the holder.

Nigeria isn't ready for such on wider scale just yet. Too many unresolved underlying issues at present.

Nice write up, however there are ways round this.
I plan on starting up a credit card fintech, there are two already in the country and the opportunity is there. I just need like $100k to start

SmartPolician:
You see, there are few people who use credit cards in Nigeria because the issuers know they are credit-worthy.

Try to make friends with someone who works with those online companies that lend Nigerians money, the person will tell you how useless Nigerians are.

The rate of default is extremely high and some shameless Nigerians will even threaten or insult you for asking them to repay the money they borrowed.

Besides, those countries that use credit cards have what they call credit score and track your spendings and earnings. If you default, the government will clear it, but you are finished because you will hardly get something on credit again unless you consult experts to help you build it again.

Na Buhari wey never loot our money finish dey come clear your bad credit history?

Spot on!
This is why they dont like LAPO.
LAPO is owned by a Nigerian, understands how Nigerians behave and know to work with Nigerians as per credit/borrowings and because of this, the public chose to hate LAPO and vilify it at every slight opportunity.

UncleAyo:
Why is Nigeria not using the credit card system? Are Nigerians less human?

There is also mobile checking in other countries where you can use a mobile phone to cash a check by just taking the picture of the check.

Credit cards are readily available but even abroad they’re based on some sort of security /credit score / personality.

Ordinary loan app quick loans are being abused and the entitled debtors I see here egging themselves over how they won’t pay is why I’m even against commercial banks offering these quick loans via dial ups.

Even most institutions can’t back their staffs ... that alone shows you how “trustworthy” Nigerians are

There are credit cards in Nigeria o. But you need to be someone “strongly” employed and the credit card is linked directly to your salary account. It’s not available to the general public because of poor database and verification systems. Nigerians move about too sporadically for that.

somehow:


We know but regulation is needed.

Anything shouldn't go if we want an organized society.

We have desperate and hapless people in Nigeria due to the state of the economy for years now, so government need to protect these people, else these loan apps will drive some into crime just to pay back the ridiculous interest and you may likely be the victim of these crimes.

True

social security no. is for the US...NIN is for nigeria... ur there blaiming govt.. inshort ..it even in this govt.. that a lot of focus is being put on NIN and even BVN .. the average nigerian doesnt want to regsiter for the NIN not to talk of linking it to his/her sim.. is that govt fault.. our mentality is the reason y govt have to bring in force to get the little things done..look at the time of bvn.. if there wernt threat to block accounts ..u think nigerians will care.. inshort b4 nigerians take this NIN seriously gov. has to block millions of sim cards otherwise we wont do it.. whereas in the saner climate. people understand the importance and even present themselves willingly to get registered

9japride:
Credit card system is very good and it discourages fraud. But those wicked entities in the corridors of power who love to see people suffer won't allow it to work. They don't want the common man to measure shoulder with them. For example with a credit facility anyone can get latest phone, car etc. In addition, we need to develop our social security number system. But due to mischievous ways of those in power, they won't allow it to work. If done properly the security situation will be reduced more than 50%. Those in power know exactly what they are doing, they all travel out and see how things are done in other countries. To me, its just pure black man wickedness and nonsense attitude. It pains me a lot that with all the wealth in the country, people can't just enjoy it fully but just a few numbers of privilege one's that are enjoying the goodies meant for everyone.

slydog:

Nice write up, however there are ways round this.
I plan on starting up a credit card fintech, there are two already in the country and the opportunity is there. I just need like $100k to start

Just make sure you do a benchmarking exercise and inspect the state of their books to make sure they themselves are not cooking the books.

Then draw up a business plan, and go looking for investors if you have indeed solved the problem of the associated risks. Wishing you the best of luck.