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Credit facilities borrowed by Nigerians from banks rose to N3.82 trillion in January 2024 amid rising inflation and harsh economic realities.
This is according to the recent Central Bank of Nigeria’s monthly Economic report posted on its official website.
Accordingly, total consumer credit rose by 11.9 percent to N3.82 trillion in January 2024 from N2.648 trillion in December 2023.
On a year-on-year basis, the figure represented an increase of N1.41 trillion from N2.41tn recorded in January 2023.
It noted also that retail loans rose by 3.6 percent to N794.79 billion in the period of review.
The figure further indicated that personal loans accounted for 7 for 9.2 percent of consumer credit.
“Total consumer credit outstanding increased by 11.9 percent to N3.82 in January 2024, driven, mainly, by the rise in personal loans on the back of heightened inflation. A disaggregation of consumer credit revealed that personal loans increased by 14.3 percent to N3.028tn from N2.648tn in December 2023, while retail loans rose by 3.6 percent to N794.79 billion.
“Personal loans accounted for 79.2 percent of consumer credit, while retail loans accounted for 20.8 percent. Consumer credit, as a share of total credit from ODCs, however, declined to 6.6 percent, from 7.7 percent in the preceding month,” it revealed.
The development is not unconnected to the rising cost of living due to the soaring inflation in Nigeria.
Recall that the National Bureau of Statistics’ latest inflation figure said headline and food inflation increased for the 17th time to 33.95 percent and 40.66 percent, respectively.
The developments come as Nigeria’s total debt stock rose to N121.67 trillion at the end of March 2024 from N97.34 trillion in December 2023.
