Over One Million Nigerians Received Loans Below 20 Percent Interest Rate in 2020

Over one million Nigerians borrowed loans below 20 percent interest rate, according to the Deputy Governor, Financial Systems Stability Director, Central Bank of Nigeria, Mrs. Aisha Ahmad.

Speaking at the last Monetary Policy Committee meeting, Ahmad, said falling lending rates is positive for credit access, economic growth and new job creation.

She said, “The gradual decline reported in lending rates is a positive development that improves access to credit for more households and businesses with a view to stimulating economic activity, creating jobs and driving a more sustainable and inclusive growth.

“As at October 2020, 86.23 per cent of total loans granted to over one million customers, by Deposit Money Banks were at interest rates considerably below 20 per cent; an improvement from 76.43 per cent as at July 2019.”

Ahmad explained that the low-interest rate reflected in the open buy back rate that stood at 1.88 percent at the end of October, she added that it indicates a highly liquid banking system.

Speaking further she said under this scenario, the banking system must be highly liquid to ensure price stability and sustain the growth of the economy.

According to her, the drop in non-performing loans to 5.7 percent in October strengthened the financial soundness of the banking sector.