News

May 9, 2024

1.15m Nigerians apply for N1.3trn consumer credit in 1wk

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By Yinka Kolawole

More than 1.1 million Nigerians have submitted Expression of Interest (EOI) for consumer credit worth more than N1.28 trillion within one week, from April 24 to May 1, 2024.

This was contained in a report by the Nigerian Consumer Credit Corporation (CrediCorp) sighted by Vanguard.

Recall that President Bola Tinubu, two weeks ago, approved the launch of the first phase of the Consumer Credit Scheme in Nigeria, a programme designed to offer credit facilities to working citizens in the country.  

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A breakdown of the report shows that, as at May 1, total consumer credit requests of about 1.15 million worth over N1.28 trillion were made by various categories of Nigerians across the 36 states of the federation and the Federal Capital Territory (FCT), covering 723 out of the 774 Local Government Areas of the country, with an average request of N1.115 million.

The report also revealed that 74 percent of the submissions were made by male, while 26 percent was by female.

Further breakdown shows that 207,962 (18 percent) requests were made for business loans (small business); 182,195 (16 percent) for personal/household expenses; 179,186 (16 percent) for school fess; 176,620 (15 percent) to buy a house; 120,936 to buy a vehicle; and 73,054 (6 percent) for investment.

Others are 53,237 to buy appliances; 48,590 (4 percent) for renting house; 41,582 (4 percent) for medical bills; 28,511 (2 percent) to pay existing debts; 12,982 91 percent) for weddings or special events; 12, 305 (1 percent) for utilities; and 7,809 (1 percent) for travels/vacation.

The report stated: “In one week, over 1 million Nigerians submitted Expressions of Interest (EOI) to CREDICORP for consumer credit. This EOI process also served as an organic nationwide survey to understand Nigerians’ personal economics and credit needs. Valuable insights are summarized in this report.

“There is evident nationwide demand for consumer credit (¦ 1.3 trillion in one week), with online submissions from 85% of LGAs. There seems a strong bias towards men – although subsequent rounds of submission (including field/offline) may reveal otherwise.

“There is large demand for productive consumer credit to be spent on enterprise. We also see significant demand for homes, vehicles, school fees, household expenses.

“Credit needs do not vary widely across genders and age. There is however a slight bias for household expenses amongst women, and home and vehicle purchases among men. As expected, school fees are a major need for credit for respondents below 35.

Vanguard News