pappilo:


I am not so much surprised by the nonsense you wrote, its the 24 illiterates (so far) that liked your post that I feel sorry for.

I concur

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 default rate 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?

Don't even go there online company that lend money in Nigeria are thieves there interest is too high,though I have never borrowed from them before but I know of some guys who complained about there excesses.

HolyTrader:
Most Nigeria-issued so-called Credit Cards are only Credit Card in Name. Most are actually Debit Cards.

Let me give you an example:
If you have a Domiciliary Account at GTB, the associated Visa Card that comes with it (needs to be applied for) is called a Credit Card. But it is actually a Debit Card - because you can't spend more than what you have in your Dorm. Acct.

What they do is this: They (GTB) will create a special Card Account No to which you can transfer funds from the main (Dorm) Account. Your so-called Credit Card is now linked to that Card Account.
In essence, you have to fund the Card Account from your Dorm Account. You can't spend more than what you have transferred in.

In this case of GTB`s so-called Corporate Visa Credit Card, what makes it horrible is that you can fund it online via Internet Banking (you can't do it by Mobile Banking) but you cannot defund it online. You can only defund it offline at a Bank's Branch via a written application. So, if your Card was compromised, you wouldn't have enough time to defund it before a big damage might have been done on the Card. What kind of worthless Card is that?

You are right, the money in your debit is the security against the loan. So at any point in time, the bank is covered up to the limit of the value of the asset you have( your bank balance) that they have access to should you ever default.

If you have other assets, tangible and intangible that can be linked directly to you, that can be used as risk mitigation in place of the cash you have sitting in your bank.

For instance, where I live, a person working in the financial services cannot afford to have an adverse credit history. That is because employers within that sector check your record in this aspect. If found to have such, you will find near on impossible to be employed or remain employed in that sector.

Financial institutions know this and this carries some weight in assessing your credit worthiness. They know that in this instances, you are less likely to default because the repercussions extends beyond a bad credit score, it also will impact your future livelihood.

So you may default, but good luck finding employers or businesses that will deal with you in future.

namo77:
Sterling Bank has started something like that with their Specta package.... We'll get there

Brother, don't go there! I think you should go to that Specta Website and learn more about it.
If you apply for a Credit (Loan), before the Money is disbursed to you, you will be immediately charged one-off Fees of 1% for Loan Management and 3.5% for Insurance. For example, if you are given a Loan of 2 million Naira, they will immediately deduct N95,000 (N20,000 + N75000) as the aforementioned Fees from the Loan. This is before you now start the Monthly Repayments with their huge Interest Rate.


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Cognitivereason:
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

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I get your point. But you should understand the kind of politics we play in Nigeria. There is no sincerity in most of their actions. Religion and tribalism are the major forces driving most leaders in this country. Until those in power learn to be straight forward that's when the masses will trust their policies. The person heading the drive for NIN registration, what was he's past belief in religious extremism? So you expect people to happily give their personal information to someone who is a religious fanatic? You and I know how petty and dangerous our politicians are, so don't blame people when they take things slowly.

Gbyms:

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.

[color=#006600][/color]

I just made an example. It's a free world. People should enjoy their hard work, go to Europe and see how people are enjoying latest things. Many of them are not even better than most Nigerians in terms of financial capabilities. But due to credit facilities they are able to enjoy themselves. For your information a lot of people in Europe buy household furniture, electronics, cars etc with credit facilities. Spreading the payment for more than a year. It's only in 9ja that one must suffer to enjoy, that's why at old age a lot of people are so weak. But in Europe you will find old people going to market on their own without support. The mental stress of thinking of how to pay for certain things is one of the major causes of breakdown.

Check https://africa-or.org/clact-id/

You are 100% right, but we can’t leave it to FG government.In some countries private businesses too create theirs by the side to help fasten businesses and transactions.
Nigerians think they are smart but end up messing everything for a larger number of people especially honest ones!

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.

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.

The best Contribution so far. Bless you Sister!

HolyTrader:



The best Contribution so far. Bless you Sister!

Thank you brotherly

pocohantas:


In premium tears.

Real premium tears .It is a miracle that Ecobank did not not sink completely from those transactions.

The bad loans and past due obligations can never be recovered.

KingofHearts:
Check https://africa-or.org/clact-id/

You are 100% right, but we can’t leave it to FG government.In some countries private businesses too create theirs by the side to help fasten businesses and transactions.
Nigerians think they are smart but end up messing everything for a larger number of people especially honest ones!

[color=#006600][/color]

It's very unfortunate. I still maintain that the CBN can create a conducive environment to ensure financial institutions have credit facilities. They can start with the Civil service, then move to the private sectors. If our identification system was working properly, it will be very difficult to escape not paying back your loan. In Europe they have your personal security number, so coming back to take another credit from a different organization is not possible. The person information will show as be defaulted on a previous credit taken.

ednut1:
There is credit card in Nigeria na, but they wont offer it to just anyone. No way to track credit score or go after defaulters . Alot of people cant even repay loan apps of small loans. They wont also repay cc na

[color=#006600][/color]

Government has a major role to make it successful and the issue of NIN should be done properly without any mischievous aim attached to it. With NIN defaulters can be tracked.

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.

[color=#006600][/color]

Thanks for the information. That's a good point.

The reason is simple. No accurate data bank can be kept in this system. Many people live in irregular, untraceable addresses. Residential address is a critical part of loans especially unsecured ones like credit cards. You are required to inform your bank of any change in address abroad. There is equally no reliable credit database in Nigeria. I'm not sure how far BVN is addressing that Credit rating agencies like Experian would usually assign you a credit score the let's your prospective creditor determine your credit history and how much risk you represent. These financial infrastructure are lacking in Nigeria. Credit cards here would be a huge leap of faith, a shot in the dark for any organization engaging in it. The financial system doesn't work like that

Among thieves, there's honor. Hence, you can't have credit cards system in Nigeria.

The loan apps wey manage dey work, you see how people dey misuse am abi.

That’s because most Nigerians will be committing suicide in droves due to enormous gambling and credit card debt !!!!

theForth:


This is terrible.

Nigerians don't deserve good leaders forget.

Very terrible.

Zooposki:
They do. My bank offered me a credit card but I did not take them up on the offer. Don’t know if you need a dom account because the offer was in dollars.

I had the offer as well. A gold or platinum card or something but it was my dollar dom account from Zenith bank.

I declined as well because I thought to myself, if Nigerian scammers get a hold of this one for just an hour I'll need a coffin to rest

thesicilian:
You want credit cards, when common online loan apps that people collect money from they'll come here to be looking for lawyers that will help them fight the company instead of just paying up

Zooposki:


Zenith Bank.

Waoh! I was going to respond with the same name. I know for sure Zenith issues Credit Cards. Naira and Dollar denominated

thesicilian:
You want credit cards, when common online loan apps that people collect money from they'll come here to be looking for lawyers that will help them fight the company instead of just paying up

The worst is the pride with which they brag of collecting loans from various apps without an I tent to pay back.

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.

Of all the comment this is not just the best comment but the truth. But Many wont get it. Am close to this politics and I can tell u they know that their only power is wen the masses are poor. Who will be praising ....Who will collect their 1500 during election to vote for them when those system are in Place. My brother we are bleeped in this country

Usminous:

It won't work in Nigeria because of the high rate of unemployment and underemployment... People that take the loan will find it very difficult to pay back.. we are not mature enough as a country to have credit card... Look for instance the online loan apps the way Nigeria default them nobi small thing and is not that most of them want to default but the high inflation rate makes life unbearable for most Nigerian to meet up with repayment at due time

Do they truly find it difficult to pay back or they borrowed more than is necessary at first because of our show off lifestyle?

ednut1:
in a country where majority earn 50k or less . Their credit limit ( if there was CC) wont be able to afford car or phone na

[color=#006600][/color]

In developed countries people spread payment for like 1, 2 3 years. So paying for good phones is very possible even with a small salary. As for cars, the number of years is even more. The rut in the country is deliberately done by successive leaders to ensure people always beg for good life.

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

Now, iPhone 13 Pro Max is out..... I'm sure he's beginning to feel like a fool. If not now, in another 6 months, he will. Guaranteed!

Alamkir:

Of all the comment this is not just the best comment but the truth. But Many wont get it. Am close to this politics and I can tell u they know that their only power is wen the masses are poor. Who will be praising ....Who will collect their 1500 during election to vote for them when those system are in Place. My brother we are bleeped in this country

[color=#006600][/color]

Thanks for the observation. It's terrible, those who are defending most of the wicked policies of government, if you ask them what have they benefited no one will give you a convincing answer and no one should mention trader money, BMC money, npower etc. In as much as I like my region to be president, I am very ok with who ever is ready to correct most of the wrong things in this country no matter where the person comes from. But the large number of funny people won't let others enjoy the good life being enjoyed in developed countries, by still voting in jokers. Though I might not have explained it perfectly. But the truth is that it boils down to politics. But guys think things just happen here for happening sake.

Litmus:


What do you mean Nigerians are too criminal minded, are you stupid or something? Actually, you're an idiot as are those with same sentiment as you on this particular slur.

your father is an idiot

thesicilian:
You want credit cards, when common online loan apps that people collect money from they'll come here to be looking for lawyers that will help them fight the company instead of just paying up

I swear dwn

pedrilo:

Hahahah see them.
Do you think anyone will bother to disturb your peace if you borrow and repay as and when due?

Sorry, stating their cons doesn't make me their customer.

Quit thinking one way.

Any bank that try credit card will within 30 days be crashed by 419ners of Nigeria .

TuFab:

Looking at you sokolaoan