The Central Bank of Nigeria (CBN) has revealed an increase in consumer credit, with personal loans and retail loans rising by 14.3% and 4%, respectively, in January 2024.
CBN in a statement disclosed that the total consumer credit outstanding reached ₦3.823 billion in January 2024, indicating a 12% jump from the previous month.
CBN said consumer credit jumped by 12 per cent to approximately ₦3.9bn in January 2024, riding on the back of majorly heightened inflation.
The apex bank explained that a disaggregation of consumer credit revealed, that personal loans increased by 14.3 per cent to N3,028bn from N2,649bn in December 2023.Retail loans rose by 4 per cent to N795bn, as personal loans accounted for 79 per cent of consumer credit, while retail loans accounted for 21 per cent.
Consumer credit, as a share of total credit from Online Data Capture Systems (ODCs), fell to around 7%, down from 8% the previous month, according to the report.
The surge in demand for loans is attributed to the escalating cost of living, as Nigeria’s headline inflation rate hit 33.95% in May, forcing the CBN to hike interest rates consecutively to 26.25%.
A study by SBM Intelligence found that 27% of Nigerians now resort to loan apps to keep up with living expenses, indicating the severe impact of inflationary pressures on daily lives.
