The value of consumer credit in the Nigerian economy fell by four per cent to N1.593 trillion in January 2021
The Central Bank of Nigeria revealed this in its monthly economic report for January.
It noted that at the aforementioned level, consumer credit constituted 8.2 per cent of credit to the core private sector, compared with 8.9 per cent in December 2020.
It stated that the decrease in the ratio largely reflected the decline in personal loans and advances by other depository corporations.
According to the report, a breakdown of consumer loans in January 2021, showed that personal loans accounted for the largest share of 69.4 per cent, but represented a decline of 1.3 percentage points from the level in December 2020, while retail loans accounted for 30.6 per cent and rose by 1.3 percentage points.
Despite the second wave of the COVID-19 pandemic, bank customers demonstrated continued confidence in the banking system.
“Accordingly, increased demand, savings, time and foreign currency deposits by bank customers led to the one per cent and 0.2 per cent growth in transferable and other deposits of the depository corporations, respectively, at end-January 2021,” it added.
Furthermore, it stated that currency outside depository corporations fell by 5.2 per cent, indicating an improvement in intermediation efficiency.
“The modest growth in liabilities to other depository corporations which reflected the adequate liquidity in the banking system, solely, explained the rise in reserve money,” it added.