The rising cost of living in Nigeria has led to a significant increase in personal loans, with the total value of personal credit rising by 14 per cent to N3.03 trillion in just one month, according to the latest data from the Central Bank of Nigeria (CBN)
To maintain their standard of living and ease inflationary pressures, Nigerians borrowed no less than N380 billion from financial institutions in January 2024, according to a recent report from the CBN.
Nigerians obtained a total value of personal loans that stood at N3.03 trillion, a 14.3 per cent increase from the N2.648 trillion obtained in December 2023, according to the report.
“Total consumer credit outstanding increased by 11.9 percent to N3.823 trillion in January 2024, driven, mainly, by the rise in personal loans on the back of heightened inflation,” the CBN report said.
The report also stated that personal loans outpaced retail loans, accounting for 79.2 per cent of consumer credit, while retail loans accounted for 20.8 per cent of total consumer credit.
Nigerians are borrowing more at a time when accelerating inflation has lowered their purchasing power, and reduced their standards of living.
Driven by the Naira devaluation, Nigeria’s annual inflation rate reached 29.90 per cent in January 2024, according to the Nigerian Bureau of Statistics.
Inflation also quickened for the 17th consecutive month to 33.95 percent in May 2024 from 33.69 percent in April 2024, driven by food and non-alcoholic beverages.
A study by SBM Intelligence found that 27 per cent 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 growing demand for personal loans coincides with the growth in the population of digital lenders.
The total number of approved digital lenders in Nigeria has surged by 64.16 percent since April 2023, reflecting the growing credit appetite of Nigerians facing weaker purchasing power and higher prices, BusinessDay earlier reported.
According to the Federal Competition and Consumer Protection Commission (FCCPC), the number of digital lenders rose to 284 in May 2024 from 173 in April 2023.
Bukola Sunday, an eggs retailer in Lagos, said that she had to resort to loans to keep her business running.
“With the prices of items rising so rapidly, I have been struggling to keep my business. I had no choice but to resort to LAPO to boost my business, and put food on the table,” she said.
“Rising cost directly impacts the need to access more funds,” Adeshina Adewumi, chief executive officer/ founder of Trade Lenda, earlier told BusinessDay.
percent increase in its Presidential Enabling Business Environment Council (PEBEC) ranking.
Speaking to newsmen, the comptroller general of Customs, Bashir Adewale Adeniyi, said the service moved up 33 places to tie at the top with four other Ministries, Departments, and Agencies (MDAs) out of 36 assessed.
Adeniyi who stated the Service’s trade facilitation measures implemented within the past year contributed to this improvement.
LEADERSHIP reports that ministries, departments, and agencies (MDAs) are ranked by activities under eight broad indicator levels, including efficiency reforms based on service delivery within stipulated timelines, transparency reforms, the review and update of Services Level Agreements, and support for manufacturing and agriculture export.
Adeniyi said, “between 2020 and 2022, the NCS maintained an average percentage score of 18.45 per cent, ranking 28th out of the 37 MDAs ranked. By 2023, the NCS ranking fell further to 34th out of 39 MDAs, with a percentage score of 18.53 per cent.
However, by 2024, I am delighted to announce that the NCS moved up 33 places, now tied at the top with 4 other MDAs out of the 36 MDAs assessed, with a percentage score of 100%, marking a 81.5 per cent increase.
“This remarkable improvement is directly attributed to the trade facilitation measures implemented within the past year. The NCS remains committed to ensuring that all recommendations and global best practices are implemented to the highest standard.”
He added that the designation of a dedicated terminal for exports also yielded significant gains, facilitating the processing of export goods through the Lilypond Command and accounting for 19.49% of total 38,294 export transactions recorded in 2023.
He said by the first quarter of 2024, the Service has processed a total of 10,786 transactions, with 3,162 (29.32%) of these processed through the dedicated export terminal.
“Initially handling 317 Single Goods Declarations (SGDs) in transactions, the terminal now manages 7,464 SGDs, accounting for 19.49 per cent of the total 38,294 export transactions recorded in 2023,” he said.
“The Service also recorded 724 seizures of 2.93 million litres of PMS (Premium Motor Spirit) that were attempted to be smuggled out of the country.
The illegal dealings in petroleum evacuation have garnered the interest of relevant stakeholders, and the ongoing Operation Whirlwind will continue to intercept and disrupt the activities of smugglers in this regard.
Adeniyi attributed the Service’s success to collaborative engagements with stakeholders, ensuring smooth operations and facilitating revenue generation.
He reaffirmed the NCS’s commitment to protecting society, ensuring national security, and implementing global best practices to the highest standard.