WATCH THE VIDEO HERE A report by the Central Bank of Nigeria has revealed that Nigerians are increasingly turning to loans as a means of coping with challenging economic conditions. Consumer credit saw a significant 12 per cent rise to around ₦3.9 billion in January 2024, mainly driven by soaring inflation rates. Based on the central bank’s most recent monthly economic report, the total outstanding consumer credit surged to ₦3,823 billion in January 2024. The report detailed that personal loans soared by 14.3 per cent to ₦3,028 billion from ₦2,649 billion in December 2023. Retail loans also saw an increase of 4 per cent to ₦795 billion, with personal loans occupying 79 per cent of the consumer credit share, and retail loans making up 21 per cent. Even though consumer credit from Online Data Capture Systems (ODCs) dropped to approximately 7 per cent(down from 8 percent in the previous month), this trend shows a rise in individuals resorting to loans for financial support. Amidst a headline inflation rate of 33.95 per cent in May, leading the apex bank to consecutively raise the interest rate to 26.25 per cent, Nigerians are grappling with the repercussions of the severe economic crisis and the escalating cost of living. A study conducted by SBM Intelligence revealed that 27 per cent of Nigerians from various income brackets are now turning to loan apps to meet their everyday expenses in light of the unprecedented inflation. The surge in demand for these loan apps highlights the profound impact of relentless inflationary pressures on the daily lives of Nigerians, particularly those facing financial constraints.
Nigerians resort to loans as inflation heightens — CBN
