Nigerians secured a total of ₦470 billion in personal loans from banks during the last quarter of 2024, according to the Central Bank of Nigeria (CBN) in its recently released Fourth Quarter 2024 Economic Report.
The report highlighted a significant 11.06% increase in consumer credit, which surged to ₦4.72 trillion by December 2024, up from ₦4.25 trillion in September. This rise reflects a growing dependence on personal loans amid prevailing economic conditions.
Breaking down the figures, personal loans expanded by 21.27%, climbing to ₦3.82 trillion from ₦3.15 trillion in the previous quarter.
This category comprised the majority of consumer credit, accounting for 80.98% of the total. In contrast, retail loans dropped by 18.18% to ₦900 billion, down from ₦1.1 trillion recorded in September.
The shift suggests a preference for personal loans over retail credit, possibly driven by rising living costs, economic uncertainties, and increased accessibility to loan facilities from commercial banks. Many Nigerians are likely turning to personal loans to manage financial pressures amid inflation and higher household expenses.
As economic challenges persist, the growing demand for personal loans underscores the evolving borrowing patterns within the country, positioning personal credit as a crucial financial lifeline for many individuals.
