Nigerians got N470 billion personal loans from banks in three months – CBN 

This was disclosed in the Fourth Quarter 2024 Economic Report released by the apex bank.

According to the report, consumer credit outstanding rose by 11.06% to N4.72 trillion at the end of December 2024 from N4.25 trillion recorded at the end of September 2024.

The substantial increase reflects a growing reliance on personal loans amid prevailing economic conditions.

The report indicated that personal loans increased significantly by 21.27%, reaching N3.82 trillion compared to the N3.15 trillion reported at the end of the preceding quarter.

This surge in personal loan accounts for the bulk of the consumer credit growth recorded within the period.

However, while personal loans saw a remarkable increase, retail loans declined by 18.18% to N0.90 trillion from N1.10 trillion at the end of September 2024.

The decline in retail loans highlights a shift in borrowing patterns, with more individuals seeking personal loans compared to retail credit.

The CBN report further revealed that personal loans constituted a dominant share of the consumer credit portfolio, accounting for 80.98%, while retail loans made up the remaining balance.

This indicates that personal loans remain the preferred form of consumer credit among Nigerians, as individuals increasingly turn to bank loans to address financial needs.

Personal loans increased by 21.27 per cent to N3.82 trillion compared with the level at the end of September 2024.

The surge in personal loans is likely linked to several factors, including rising living costs, economic uncertainties, and increased access to credit facilities by commercial banks. The sustained demand for personal loans could also be linked to consumers’ efforts to meet financial obligations amid inflationary pressures and higher costs of living.

The increase in personal loans also reflects banks’ willingness to extend credit to individuals, especially as the demand for retail loans diminishes

Despite the surge in personal loans, the CBN’s report also highlighted the prevailing high-interest rate environment, which has made borrowing more expensive.

As a result, commercial banks increased interest rates on personal loans, making borrowing more expensive for individuals.