Common law purchase money security interest and Nigeria’s secured transactions in Movable Assets Act 2017

Abstract

Retention of title clause, conditional sale and Quistclose trust are all common law (and equity) devices for preserving sellers’ or creditors’ title in property they finance or advance which is no longer in their possession. As functional secured credit, most common law jurisdictions have codified these common law mechanisms and principles and termed them purchase money security interest (PMSI) save for Quistclose trust that remains equitable and an involuntary or non-consensual security interest. This article examines the common law origins of these principles, their application in Nigeria, and analyses the application and consequences of codification of these principles in Nigeria’s Secured Transactions in Movable Assets Act 2017.