A new report by the Central Bank of Nigeria (CBN) indicates that Nigerians have resorted to loans as one of their survival strategies as inflation hits a record high.
According to the report, consumer credit jumped by 12 per cent to approximately ₦3.9 billion in January 2024.
According to the apex bank’s latest monthly economic report, the total consumer credit outstanding increased to N3,823 billion in January 2024.
The report further explained that a disaggregation of consumer credit revealed, that personal loans increased by 14.3 per cent to N3,028 billion from N2,649 billion in December 2023.
Retail loans rose by 4% to N795 billion, as personal loans accounted for 79% of consumer credit, while retail loans accounted for 21%.
This is as the headline inflation rate as provided by the National Bureau of Statistics (NBS), hit 33.95% in May 2024, forcing the apex bank to hike the interest rate consecutively to 26.25%.
The rising inflation has since seen Nigerians grappling with the effect of the worst economic crisis, as the cost of living escalates.
A study by SBM Intelligence found that 27% of Nigerians across different income categories now resort to loan apps to keep up with their living expenses in the wake of record inflation.
The increase in demand for these loan apps indicates the severe impact of the unyielding inflationary pressures on the daily lives of Nigerians.
