According to the Central Bank of Nigeria’s (CBN) Economic Report for the Second Quarter of 2023, Nigerians have borrowed over N290 billion from banks in the last three months.

Consumer credit, which includes retail and personal loans, rose by 12.2% in 2023, from N2.35 trillion in the first quarter to N2.64 trillion in the second quarter.

In the three months between April and June of this year, there will have been an increase of N290 billion.

Personal loans account for N1.92 trillion (72.9%) of the total consumer credit of N2.64 trillion as of June 2023, while retain loans account for N715.10 billion (27.1%).

 

Consumer credit improved owing to increased demand for personal loans and strengthened enforcement of the Loan-to-Deposit Ratio (LDR) policy.

“Consequently, total consumer credit increased significantly by 12.2%, to ₦2,637.31 billion in the second quarter of 2023, compared with ₦2,349.88 billion at the end of the preceding quarter.

“As a share of total credit by ODCs, consumer credit declined to 7.0%, this was below the 7.7 and 7.8 per cent recorded in the preceding quarter and the corresponding period of 2022, respectively.

“The components of consumer credit revealed that personal loans accounted for the larger share, totalling ₦1,922.20 billion, representing 72.9% of the total, while retail loans accounted for 27.1%, equivalent to ₦715.10 billion.”