The rising cost of living in Nigeria has prompted citizens to borrow approximately N740 billion from banks between January and September this year. Analysis of the Central Bank of Nigeria’s quarterly economic reports reveals a steady quarterly increase in consumer credit, reflecting the economic challenges faced by Nigerians amidst persistent inflation and a declining purchasing power.
Key developments from the quarterly reports:
• Q1 2023: Consumer credit increased to N2.35 trillion, representing a 1.7 per cent rise from Q4 2022.
• Q2 2023: Further increase to N2.6 trillion, indicating a quarterly rise of 10.6 per cent.
• Q3 2023: A quarterly increase of 17 per cent, reaching an all-time high of N3.05 trillion.
This upward trend in borrowing underscores the financial strain on the population, raising concerns about the long-term impact on personal finances and the overall economy. The ongoing economic challenges have contributed to a surge in borrowing as individuals seek financial support to navigate the increasingly expensive living conditions.
