Consumer credit increases 32% to N3.05trn in 9mths

Consumer credit rose by 32 per cent to N3.05 trillion in the nine months to September 2023, 9M ‘23 from N2.31 trillion at the end of December 2022.

The Central Bank of Nigeria, (CBN) disclosed this in its quarterly economic reports which showed steady increase in consumer credit.

Analysis showed that consumer credit grew by 1.7 percent to N2.35 trillion in the first quarter, Q1’23 from N2.31 as at December ending 2022.

Consumer credit further rose by 10.6 percent to N2.6 trillion in the second quarter, Q2’23 and again by 17 percent to N3.05 trillion in the third quarter, Q3’23.

In its review of growth in consumer credit in Q3’23, CBN noted that personal loans continued to account for the larger share (74.8 percent), while retail loans accounted for the balance (25.2 percent) of consumer credit during the period.

The CBN said: “Consumer credit outstanding increased, attributable to the need to cope with relative increase in the cost of living. Thus, consumer credit grew by 15.5 percent to N3.05 trillion, compared with the N2.64 trillion at the end of the preceding quarter.

“Analysis of consumer credit by components revealed that personal loans increased by 18.6 percent to N2.28 trillion, as against the N1.92 trillion in the preceding quarter, while retail loans, at N766.97 billion, grew by 7.3 percent.

“In terms of composition, personal loans continued to account for the larger share (74.8 percent), while retail loans accounted for the balance (25.2 percent).

“As a share of total sectoral credit from the Other Depository Corporations (ODCs), consumer credit rose to 7.8 percent, from 7.0 percent in the preceding quarter.