Nigerians are increasingly resorting to loans to cover rising living expenses, with consumer loans spiking by 34% year-on-year to N2.64 trillion in H1’23.
This surge is driven by households grappling with higher living costs due to factors like naira depreciation, food supply gaps, and insecurity.
The National Bureau of Statistics reported a 10th consecutive month of inflation increase to 27.33% in October 2023, with food inflation reaching 31.52%.
Banks facilitated this loan growth through digital innovations, simplified processes, improved product design, and increased publicity.
The Central Bank of Nigeria’s data reveals that the 34% YoY growth in H1’23 is the highest in four years.
The CBN Economic Report for Q2’23 indicates consumer loans rose from N1.93 trillion in June 2022 to N2.64 trillion in June 2023, reflecting a 34% YoY growth of N704 billion.
This growth is significantly higher than the 5.0% YoY recorded in June 2022. Additionally, consumer loans showed a 12.2% quarter-on-quarter growth from N2.35 trillion in Q1’23.
The improvement in consumer credit is attributed to increased demand for personal loans and strengthened enforcement of the Loan-to-Deposit Ratio (LDR) policy, according to the CBN.
