Transnational Regulation, Lenders' Responses and the Needs of Consumer Borrowers in Nigeria

This thesis undertakes an analysis of the developing international paradigm and rationale for regulating consumer credit and their application to Nigeria. The thesis makes an original contribution by problematising the simple application of the transnational model to Nigeria, which currently produces counterproductive outcomes for consumer borrowers. The thesis argues that the emerging transnational paradigm since the Global Recession presents an opportunity for stronger consumer protection and access to credit in Nigeria only if the framework is adapted to the existing institutional structures. To effectively address the research question, the thesis engages with economic neoliberalism as an analytical framework, the influences of psychology (behavioural science) on law, and the historical relationship of Nigeria with transnational institutions. Through a careful analysis of existing literature and a small scale qualitative study, the thesis found: (a) links between transnational regulation and decreased lending by formal sector lenders to consumer borrowers in Nigeria; (b) a weak coalition of change agents at the national level to advance the interests of consumer borrowers, and thus, forsee a role for transnational actors as change agents within the Nigerian credit market; (c) that International Financial Institutions (IFIs) like the World Bank and the International Monetary Fund (IMF) must approach this role from a social protection prism that rests on a new pro-poor 'conditionality', distinct from how conditionality has traditionally been used in Africa. The thesis is a scoping exercise that engages with the research question primarily from the perspective of formal lenders, and designed to facilitate more in-depth studies of the issues in the longer term. It is hoped that the findings of this thesis will stimulate further study. While making policy recommendations, the thesis was careful to avoid broad generalisations.