Trends of Trade Credit Use among Quoted Firms in Nigeria

Abstract

Use of trade credit is considered an essential part of successful businesses all over the world. This study examines the trends of trade credit use by quoted firms in Nigeria for the sample period 2000-2009. The results reveal a variation and gross inconsistency in the use of trade credit by Nigeria quoted firms. The finding suggests the possible reason for low financial status of most Nigeria firms as indicated by their low utilization of alternative source of financing. The study indicates a need for overall motivational drive by stakeholders to encourage the use of trade credit by firms and establish a concrete alternative source of financing.

Key words: Trade credit, Trends, Quoted firms, Nigeria