The role of law in financing the Nigerian informal sector

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Periodical article

Title:	The role of law in financing the Nigerian informal sector
Author:	Oladele, O.O.
Year:	1999
Periodical:	Lesotho Law Journal: A Journal of Law and Development
Volume:	12
Issue:	2
Pages:	129-150
Language:	English
Geographic term:	Nigeria
Subjects:	credit cooperatives credit informal sector
Abstract:	The informal sector provides the means of livelihood for most Nigerians, and the launch pad for domestic industrial growth and development. Yet most informal sector operators in Nigeria are unable to secure formal sector finance since they cannot provide collateral guarantee. Alternative sources of informal sector finance are mostly community savings and advances schemes that have operated successfully with the means available to them. Others are cooperative schemes with features of community savings schemes. Their relational character, high level and inexpensive information network, peer-monitoring devices, blockage of defaulters from access to further credit and the attendant social stigma of default encourage a high rate of repayment and ensure the schemes' success. Any legal framework must accommodate and promote these goals and aspirations. It must begin with the system designed and operated by the people and improve on it. Notes, ref. [ASC Leiden abstract]