Thursday, November 23, 2006

Credit. Let's talk credit.

Someone was telling me today about new Credit Card services being introduced in Nigeria. Examples from Ecobank Nigeria Plc, and UBA, United Bank for Africa, Plc.

My worry is that, as in America, widely available credit will provide opportunities...for many people to enter great financial hardship.


umc said...

...and for the banks to make a lot of money.
Heaven knows how much more they'd make with interest rates still very high and revenue from "their foreign exchange deals".

Let's talk credit, Anyone know anything about Venture Capitalists or Business Angels in Nigeria.

bayo opadeyi said...

Credit cards have two sides. Now we have access to purchase tools to enhance our trade(s) and make more money...Though it's true that I get the bitten by the 'spend bug' sometimes too! :)

t said...

I agree that it's good business for the issuer and a good service for the consumer.
most people haven't the discipline or training to control their spending. They can't "cut their coats..."

For these people, credit is a trap. Look at America; see how many people work year-upon-year to pay off interest on credit card and other loans.

It's why so many people are so busy: they owe, they owe, it's off to work they go.

t said...

Hi umc, that should be a new post, so it can get more attention and responses. Will you like to write it?
If you have a business idea, I hope you can find funding by networking here and elsewhere.

t said...

Shola wrote previously about pools of Venture Capital in Nigeria.
...answering umc's question.

umc said...

Thank you for the link,t.

Due to where my primary investment interest lies at the time.

Like these previous posts,

Trade secret of fast money Traders.

The 4 Best words on investing advice.

Investing like the Best and Prosper.

I had a quick glance at the post African Financial Markets; also the topic hid the issue of Pools of Venture Capitalist in Nigeria.

It should be a new post, people do have ideas and require knowledge of pools to source from. Shola's comment is the reference or more if there are (there should).

I do have a business idea and would post in due time.

t said...

I only recently was able to start understanding the September 2006 "Trade Secret of Fast Money Traders" post by Shola...recently became a trader in forex, so I'm practising some of those principles.

In business, it seems I am an ideas person, but it's hard for me to focus on profit/revenues/the bottom line; soft considerations always enter, like what good is the product, how does it enhance my relationships, how does it enhance people's lives, etc. Many times, when I think I float a business idea, it's actually a life-improvement idea, or an idea for channeling talent or increasing quality-of-life. I'll like to write a post soon that SOLICITS IDEAS - remember the Recipes for Economic Development post series? - for economic development in our home countries (Nigeria, USA, Kenya, wherever) FOCUSING on development that makes for a better quality of life e.g. more security, more contentment, more opportunity, more beauty, more rest, more efficiency, or more economic risk, more work, fuller employment, more entrepreneurship, more corporatism, more specialization, more multi-tasking, more conservatism, more liberal, more inclusive, more...what?

Clearly, part of the issue would be picking out a few social goals we clearly find worth supporting. For example, contentment may not be an option for people who innately believe in striving for seems that many young Nigerian people want opportunity! while "affluent" Nigerian people just want to not be bothered by their poorer neighbours (either when they beg for money, ask for bribes, or rob at gunpoint.)

In other words, what are some VALUES around which we can prescribe and implement economic activities?

t said...

Minting money off poverty
from MSN MoneyCentral, echoes my views on the risk to ill-informed consumers of credit.
Lenders have found a new source of profits: the nation's working poor, who because of ignorance, inexperience or just plain lack of responsibility, have become easy pickings.

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