The number of bank loans through credit facilities in Nigeria increased to N3.82 trillion in January 2024 amidst escalating inflation and challenging economic conditions, as reported in the latest monthly Economic report by the Central Bank of Nigeria published on its official website.
Total consumer credit surged by 11.9% to N3.82 trillion in January 2024 from N2.648 trillion in December 2023. Year-on-year, this represented a rise of N1.41 trillion from N2.41 trillion recorded in January 2023. The report also highlighted that retail loans grew by 3.6% to N794.79 billion during the review period.
Furthermore, the data indicated that personal bank loans constituted 79.2% of consumer credit.
“Total consumer credit outstanding increased by 11.9% 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% to N3.028tn from N2.648tn in December 2023, while retail loans rose by 3.6% to N794.79 billion.
“Personal loans accounted for 79.2% of consumer credit, while retail loans accounted for 20.8%. Consumer credit, as a share of total credit from ODCs, however, declined to 6.6%, from 7.7% in the preceding month,” it revealed.
The advancement is attributed to the escalating inflation in Nigeria, which has resulted in an increased cost of living.
According to the latest inflation figures from the National Bureau of Statistics, both headline and food inflation rose continuously for the 17th consecutive period, reaching 33.95% and 40.66% respectively.
This trend aligns with Nigeria’s total debt rising to N121.67 trillion by the end of March 2024, up from N97.34 trillion in December 2023.