Abstract:

The purpose of this study is to analyse securitization as a feasible and alternative method for businesses to get additional cash. To grow and expand their businesses, business organizations and other corporate entities need a lot of money. When a company's financial resources are depleted, equity capital becomes scarce, and expansion becomes stalled. As a result, shareholders may not be willing to sell their stock to the public in order to improve their financial liquidity. As a result, they've turned to unconventional methods of raising additional funds at low cost. Through the use of Special Purpose Vehicles, securitization has proven to be an alternative way firms can use to raise funds by converting assets/receivables that are not tradable into tradable securities through the Special Purpose vehicle (SPVs). As a result, the securitization market has grown. From a non-existent industry in 1970 to $6.6 trillion in the second quarter of 2003, securitization has grown at an exponential rate. SPVs have been put to a variety of uses by leveraging the corporate personality principle to achieve various economic goals, as has been demonstrated in a number of cases. Regrettably, the opportunities provided by the securitization process have not been fully exploited in Nigeria. This study is conducted against the backdrop of asset securitization's potential utility in Nigeria, as well as the appropriateness or otherwise of existing law in structuring asset securitization given the transaction's characteristics.