Consumer credit surged by 40% year on year, YoY, to N2.1 trillion in November last year from N1.5 trillion in November 2020, according to the Central Bank of Nigeria (CBN). This is due to an increase in the pace of economic activity.
NewsReport gathered that the CBN noted this in its recently issued Economic Report for November 2021, which also revealed that at the end of the month, consumer credit accounted for 8.9% of total credit to the private sector.
“Consumer credit outstanding increased due to an increase in the tempo of economic activity,” the report added. At the end of October, total consumer credit extended by Other Depository Corporations (ODCs) climbed by 4.3 percent to N2.1 trillion, up from N2 trillion at the end of the previous month.
This value represents 8.9 percent of the total credit to the private sector in the month, compared with 8.7 percent in the preceding month.
“In terms of the composition of consumer credit, personal loans maintained their dominance, accounting for 78.1 percent, while retail loans accounted for the balance of 21.9 percent.”
“Sectoral credit allocation expanded by 17.9 percent in November, higher than the 14.5 percent growth at end-October, reflecting the bank’s sustained efforts to boost economic activity through the provision of credit to key sectors of the economy.
“Total sectoral credit allocation grew by 3.0 percent to N24 trillion from N23.3 trillion in the preceding month.
“A sectoral disaggregation showed that industry and services maintained dominance with a share of the total credit of 36.4 percent and 35.4 percent, respectively.
This was lower than their respective shares of 37.1 per cent and 35.8 per cent in the preceding month.