The role of law in financing the Nigerian informal sector

Abstract

Nigeria has a population of over 100 million and the second largest economy in Sub-Saharan Africa. However, it largely is a primary producer. Agriculture accounts for about 40 percent of the GNP, while manufacturing is just 10 per cent. Two-thirds of the work force is employed in manual and subsistent agriculture. An uncertain but considerable number do petty trading. Most of these do not have access to the formal financial market credit because of factors which include the perceived risk of the venture, unaffordable transaction cost, their inability to secure that credit, as well as problems associated with loan recovery.