Nigerians borrowed N470 billion in personal loans from banks in the last quarter of 2024, the Central Bank of Nigeria (CBN) has revealed.
According to the Fourth Quarter 2024 Economic Report, consumer credit outstanding jumped by 11.06% to N4.72 trillion in December, up from N4.25 trillion in September. The surge reflects growing reliance on loans amid rising living costs and economic uncertainty.
Personal Loans Surge, Retail Credit Drops
Personal loans soared by 21.27% to N3.82 trillion, while retail loans fell by 18.18% to N0.90 trillion, showing a clear shift in borrowing trends.
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Personal Loans Now 80.98% of Consumer Credit
The report shows personal loans dominate 80.98% of total consumer credit, confirming a preference for direct personal borrowing over retail credit.
High Borrowing Costs, But Demand Stays Strong
Despite multiple CBN rate hikes pushing the Monetary Policy Rate (MPR) to 27.50%, personal loan demand remains high, showing Nigerians' increasing dependence on credit to meet financial obligations.
What's Next?
With inflation rising and loan costs increasing, how will Nigerians sustain their growing reliance on personal credit?
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