The latest monthly report by the Central Bank of Nigeria (CBN) has shown that Nigeria’s personal loan portfolio rose by 37.76 per cent to N3.32 trillion in November 2024.
Many Nigerians have resorted to borrowing to cushion the impact of rising inflation and high cost of living in the country.
According to the report, personal loans grew from N2.41 trillion in October to N3.32 trillion in November, marking one of the most significant monthly increases in recent years.
It showed that personal loans now account for 74.95 per cent of total consumer credit, drawing attention to the growing dependence on unsecured loans to cover essential expenses such as rent, healthcare, education, and household needs.
Consumer credit outstanding also saw a substantial increase of 26.29 per cent, reaching N4.42 trillion in November from N3.50 trillion the previous month.
Retail loans, which cover credit facilities for asset financing and consumer durables, also rose by 1.83 per cent from N1.09 trillion in October to N1.11 trillion.
“Consumer credit outstanding increased significantly by 26.29 per cent to N4.42tn from the level in the preceding month, due, largely, to inflation expectations. Personal loans grew by 37.76 per cent to N3.32tn, from N2.41tn at end-October 2024.
“Similarly, retail loans increased by 1.83 per cent to N1.11tn from N1.09tn in the preceding month. Personal loans accounted for 74.95 per cent of total consumer credit, while retail loans constituted the balance,” the report read.
The report also noted that higher interest rates on savings and fixed deposits have encouraged banks to expand lending, even as borrowing costs remain high.
