Emmanuel Ochayi
Amidst a relentless surge in living expenses, Nigerians have borrowed approximately N740 billion from banks between January and September this year, according to the Central Bank of Nigeria’s quarterly economic reports.
This rise in consumer credit, reaching an all-time high of N3.05 trillion by Q3 2023, depicts a 32% increase in nine months, showcasing the populace’s struggle with inflation’s unyielding pressures and diminishing purchasing power.
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“The increase in consumer credit signifies the need to cope with the escalating cost of living,” stated the CBN.
Personal loans constitute the lion’s share, accounting for 74.8% of the consumer credit, with retail loans making up the remaining 25.2%. These loans witnessed an 18.6% surge to N2.28 trillion for personal loans and a 7.3% increase to N766.97 billion for retail loans.
With inflation potentially reaching 30% by December 2023, the World Bank warns of an impending rise in poverty, having already pushed an estimated four million more Nigerians into it within the first five months of this year. Current figures indicate around 133 million Nigerians already live below the poverty line.
As inflation continues its upward trajectory, more individuals across various income brackets, reportedly 27% as per SBM Intelligence, are turning to loan apps to sustain their livelihoods amidst the soaring costs.
