Procedure For Obtaining Pawn Brokering Licence

Introduction

The concept of pawn brokering entails the giving out of short-term credit facility by certain people known as pawn brokers, to persons who are desirous of obtaining such loans in exchange for some item(s) of value¹ which is pledged as collateral for the pawn loan. These individuals get their valuables back from the pawnbroker, if they successfully pay back the money which they were loaned along with the accruing interest on the loan. Upon failure to repay the loan and accruing interest, the pawnbroker reserves the right to sell the item(s) to a subsequent customer in order to recover the loan sum.

Pawnbrokering in Nigeria

The concept of pawn brokering is not a very common concept within the Nigerian financial landscape, as such, there are not many pawn shops spread across the length and breadth of the country. However, for those in operation in Nigeria, they seek to provide easy-to-access services to individuals who are desirous of engaging them.