Nigerians’ borrowing from banks soared to N3.82 trillion in January 2024, reflecting the impact of rising inflation and challenging economic conditions.
This data comes from the latest monthly economic report published by the Central Bank of Nigeria (CBN)
The report reveals that total consumer credit increased by 11.9 percent, climbing from N2.648 trillion in December 2023 to N3.82 trillion in January 2024. Year-on-year, this figure represents a significant rise of N1.41 trillion, up from N2.41 trillion in January 2023. Additionally, retail loans saw a 3.6 percent increase, reaching N794.79 billion during the review period.
A deeper analysis shows that personal loans were the primary driver of this increase, surging by 14.3 percent from N2.648 trillion in December 2023 to N3.028 trillion in January 2024. Personal loans constituted 79.2 percent of the total consumer credit, while retail loans made up 20.8 percent.
However, consumer credit as a share of total credit from Other Depository Corporations (ODCs) declined to 6.6 percent from 7.7 percent the previous month.
The rise in borrowing is closely linked to the escalating cost of living, driven by soaring inflation rates in Nigeria. According to the National Bureau of Statistics, the latest figures show headline inflation at 33.95 percent and food inflation at 40.66 percent, marking the 17th consecutive increase.
This borrowing trend coincides with a significant rise in Nigeria’s total debt stock, which grew to N121.67 trillion by the end of March 2024, up from N97.34 trillion in December 2023.
