- Consumer credit refers to short- and intermediate-term loans, without collateral, offered by banks or online lenders.
- Retail loans witnessed an 18.18 percent decline, dropping to N0.90 trillion from N1.10 trillion at the end of September 2024.
- A breakdown indicated that personal loans, with a share of 80.98 per cent, remained dominant, while retail loans accounted for the balance
According to the latest data released by the Central Bank of Nigeria (CBN) in its Economic Report for Q4’2024, the total consumer credit outstanding experienced an 11.06 percent increase, reaching N4.72 trillion at the end of December 2024.
Eko Hot Blog reports that this figure is a significant jump from the N4.25 trillion recorded at the end of September 2024.
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The report highlights that personal loans experienced a 21.27 percent surge to N3.82 trillion when compared with the end of September 2024.
However, retail loans witnessed an 18.18 percent decline, dropping to N0.90 trillion from N1.10 trillion at the end of September 2024.
Consumer credit refers to short- and intermediate-term loans, without collateral, offered by banks or online lenders.
These loans are meant to finance the purchase of goods or services for personal consumption or to refinance debts incurred for such purposes.
Analysts attribute the substantial increase in consumer credit in the last quarter of 2024 to the mounting inflationary pressures in Nigeria.
According to the CBN report, “consumer credit outstanding rose by 11.06 per cent to N4.72 trillion at end-December 2024, from N4.25 trillion at end-September 2024.
Personal loan increased by 21.27 per cent to N3.82 trillion compared with the level at end-September 2024. “Retail loan, however, declined by 18.18 per cent to N0.90 trillion from N1.10 trillion at end- September 2024.
A breakdown indicated that personal loans, with a share of 80.98 per cent, remained dominant, while retail loans accounted for the balance.”
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Meanwhile, on the fiscal operations of the Federal Government in the last quarter of 2024, the report said that the government’s overall deficit reduced by 3.61 per cent to N3.08 trillion, “reflecting the improved balance that resulted from a more than proportionate increase in revenue over expenditure.”
