Consumer loans continued to rise in October last year, rising 37% year on year, YoY, to N2 trillion, owing to improved credit appraisal and product diversifications offered by banks and other lenders. In October 2020, the volume of consumer loans was N1.47 trillion.
According to Financial analysis of data from the Central Bank of Nigeria, CBN, monthly economic report for October 2021, the growth in consumer loans was driven by a 52% year on year increase in personal loans, which rose to N1.57 trillion in October 2021.
According to CBN data, the continued increase in consumer loans, particularly personal loans, is being driven by improved credit appraisal and the variety of products offered by banks.
According to the Central bank, “consumer credit outstanding increased due to an increase in personal loans resulting from an improved credit appraisal and diverse product offering.”
“Total consumer credit extended by Other Depository Corporations (ODCs) increased by 3.4% to n2,009.88 billion at the end of October 2021, up from n1,942.87 billion in September 2021.”
“In October 2021, the ratio of consumer credit to total credit to the private sector was 8.7 percent, the same as in the previous month.”
“A disaggregation of consumer loans revealed that personal loans continued to dominate, accounting for 78.0 percent, up 2.3 percentage points from the previous month, while retail loans accounted for the remaining 22.0 percent.”