According to a study by the Central Bank of Nigeria, consumer credit increased by 12% to around ₦3.9 billion in January 2024, driven by high inflation.
According to the apex bank’s most recent monthly economic report, total consumer credit outstanding rose to N3,823 billion in January 2024.
According to the report, a disaggregation of consumer credit revealed that personal loans climbed by 14.3% to N3,028 billion, up from N2,649 billion in December 2023.
Retail loans increased by 4% to N795 billion, with personal loans accounting for 79% of total consumer credit and retail loans accounting for 21%.
Consumer credit as a percentage of overall credit via Online Data Capture Systems (ODCs) fell to around 7%, down from 8% the previous month, according to the data.
The National Bureau of Statistics (NBS) reported a headline inflation rate of 33.95 percent in May, prompting the central bank to raise interest rates to 26.25 percent.
Rising inflation has left Nigerians coping with the consequences of the worst economic crisis, as the cost of life rises.
According to a study conducted by SBM Intelligence, 27% of Nigerians from various income categories are now using loan applications to cover their living expenditures in the wake of record inflation.
The increase in demand for these lending apps demonstrates the devastating impact of persistent inflationary pressures on Nigerians’ daily lives, particularly those already struggling with low financial means.
