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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Pre-Colonial Institutional Frameworks for Moneylending and Loan Repayment Among the Yoruba
Author:Adebayo, Akanmu G.
Geographic term:Nigeria
Peoples of Africa (Ethnic Groups)
History and Exploration
Economics and Trade
Abstract:By the time of the British conquest of Nigeria, a variety of credit institutions had developed in Yorubaland, ranging from the interest-free funds of rotating savings and credit associations to loan markets based on kinship but guided by the 'capitalist' goals of profit making and accumulation. This paper examines three types of credit system that operated on the basis of interest collection: the system of pledging crops as collateral and interest on loan; the 'iwofa' system, where interest was paid in the form of labour supplied to the creditor; and the 's'ogund'ogoji' system (literally, convert twenty to forty), under which interest was paid in cash at a rate of at least 100 percent. The author describes the manner in which these systems operated and the institutional mechanisms that protected the creditor from default. He shows that the institutional frameworks for moneylending among the Yoruba, particularly the 'iwofa' system, promoted the development of clientelism in Yorubaland. He also shows the dynamic nature and the resilience of Yoruba credit institutions; although the controversial 'iwofa' system was abolished under colonial rule, the 's'ogund'ogoji' system and usufruct loans are currently still in operation in both rural and urban areas. Bibliogr., notes, ref.