The Central Bank of Nigeria (CBN) has disclosed that Nigerians took personal loans worth N470 billion from banks in the last quarter of 2024.
According to the Fourth Quarter 2024 Economic Report released by the apex bank, consumer credit outstanding increased by 11.06%, rising from N4.25 trillion at the end of September 2024 to N4.72 trillion by December 2024.
The report highlighted a 21.27% surge in personal loans, reaching N3.82 trillion, compared to N3.15 trillion recorded in the previous quarter. This increase contributed significantly to the overall growth of consumer credit.
However, while personal loans soared, retail loans saw a decline of 18.18%, dropping from N1.10 trillion in September 2024 to N0.90 trillion by December 2024.
This surge in personal loan accounts for the bulk of the consumer credit growth recorded within the period.
The decline in retail loans highlights a shift in borrowing patterns, with more individuals seeking personal loans compared to retail credit.
The CBN report further revealed that personal loans constituted a dominant share of the consumer credit portfolio, accounting for 80.98%, while retail loans made up the remaining balance.
This indicates that personal loans remain the preferred form of consumer credit among Nigerians, as individuals increasingly turn to bank loans to address financial needs.
The report read, “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 loans increased by 21.27 per cent to N3.82 trillion compared with the level at the end of September 2024.
“Retail loan, however, declined by 18.18 per cent to N0.90 trillion from N1.10 trillion at 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.”
