The Central Bank of Nigeria, CBN has disclosed that the volume of consumer loans has risen to two trillion naira as recorded in October, 2021.
It stated that the increase has been persistent since last year, rising by 37 percent, year-on-year, YoY. In October, 2020, the value of consumer loans recorded was N1.47 trillion.
CBN, however, attributed the increase to improved credit appraisal and the various products offered by banks and other lenders in rendering their services.
The CBN data stated that, “monthly economic report for October, 2021, showed that the growth in consumer loans was driven by a 52 per cent, YoY increase in personal loans, which rose to N1.57 trillion in October 2021.
“Consequently, the share of personal loans in the total consumer loans basket rose to 78 per cent in October 2021 from 70.4 per cent in October 2020.”
On the month-on-month (MoM) record, consumer lending moved from N1.94 trillion in September 2021 to N2 trillion in October 2021– an increase of 3.4 per cent.
The CBN noted that the continuous growth in personal loans increased consumer credit outstanding. The personal loans are from credit appraisal and diverse products by banks.
“Total consumer credit extended by the Other Depository Corporations (ODCs) grew by 3.4 per cent to N2,009.88 billion at the end of October 2021, from N1,942.87 billion at the end of September 2021.
“The ratio of consumer credit to the total credit to the private sector in October 2021 was 8.7 per cent, the same share as in the preceding month.
“A disaggregation of consumer loans revealed that personal loans maintained their dominance, accounting for 78.0 per cent, increasing by 2.3 percentage points, above the level in the preceding month, while retail loans accounted for the balance of 22.0 per cent,” the CBN data stated.
