The Central Bank of Nigeria (CBN), in a recently released Economic report for November 2021, disclosed that consumer credit rose 40 percent, year-on-year, to 2.1 trillion in November 2021 contrary to what obtained in November 2021 where it was at 1.5 trillion.
The rapid rise, according to the CBN report, is due to the frequency of economic activities going on. Below are excepts from the report:
“Consumer credit outstanding increased owing to an increase in the tempo of economic activities. Total consumer credit extended by the Other Depository Corporations (ODCs) grew by 4.3 per cent to N2.1 trillion from N2 trillion at the end of October. This value represents 8.9 per cent of the total credit to the private sector in the month, compared with 8.7 per cent in the preceding month.
“In terms of the composition of consumer credit, personal loans maintained their dominance, accounting for 78.1 per cent, while retail loans accounted for the balance of 21.9 per cent.”
“Sectoral credit allocation expanded by 17.9 per cent in November, higher than 14.5 per cent growth at end-October, reflecting the bank’s sustained efforts at boosting economic activities through the provision of credit to key sectors of the economy.
“Total sectoral credit allocation grew by 3.0 per cent to N24 trillion from N23.3 trillion in the preceding month.
“A sectoral disaggregation showed that Industry and Services maintained dominance with the share in the total credit of 36.4 per cent and 35.4 per cent, respectively. This was lower than their shares of 37.1 per cent and 35.8 per cent, in the preceding month.
“However, the share of agriculture to total credit rose to 5.8 per cent, from 5.5 per cent in October.”