On the back of rising inflation rate in Nigeria, banks’ consumer loans rose by 31 per cent or N615.82 billion in one month to N2.55trillion in July 2022 from N1.93trillion in June 2022, the Central Bank of Nigeria (CBN) economic report for the month of July 2022 has revealed.
The CBN in the report stated that, “As a share of total claims on the private sector, consumer credit rose to 9.4 per cent, from 7.2 per cent at end-June.
The increase in consumer credit could be attributed to general rise in prices which impacts on households’ budget and spending behaviour.”
The inflation rate opened in January 2022 at 15.6 per cent and increased to 19.64per cent in July 2022, according to the National Bureau of Statistics (NBS). Banks’ consumer loans in its Year-on-Year (YoY) performance have increased by 38.34 per cent or N706.45billion from N1.84trillion in July 2021 to N2.55trillion in July 2022 amid increasing inflation rate and hike in CBN’s Monetary Policy Rate (MPR).
The CBN had in a report disclosed that banks’ consumer loans grew by 0.17 per cent to N2.08trillion in January 2022, from N2.07trillion in December 2021, accounting for 8.7 per cent of total credit to the private sector.
