CBN: Consumer Credit Fell By 6.93% To N3.84trn In February

Consumer credit outstanding decreased by 6.93 per cent to N3.84 trillion in February 2025 from N4.12 trillion at the end of the preceding month, the Central Bank of Nigeria (CBN) has said.

The apex bank, which disclosed this in its economic report for February 2025, released on Thursday, said the decline reflected, “lower appetite for consumer loans in the face of high interest rates.”

According to the report, an analysis of the consumer credit data shows that personal loans stood at N2.12 trillion, accounting for 55.19 per cent, while retail loans, at N1.72 trillion, accounted for the balance.

Specifically, the report said: “Total credit by Other Depositary Corporations (ODCs) to key sectors of the economy decreased by 1.12 per cent to N57.94 trillion at end- February, from N58.60 trillion at end-January 2025.

“The services sector recorded a 6.11 per cent decline in credit flow in the review period. However, credit to the agriculture and industry sectors increased by 4.66 and 4.98per cent, respectively, indicating sustained policy support for food security and industrial growth.

“In terms of sectoral distribution, the services sector maintained the largest share at 52.10 per cent, followed by industry (42.49%) and agriculture (5.41%).

“Consumer credit outstanding contracted by 6.93 per cent to N3.84 trillion, from N4.12 trillion at end-January 2025, reflecting lower appetite for consumer loans in the face of high interest rates.

A disaggregation of consumer credit showed that personal loans stood at N2.12 trillion, accounting for 55.19 per cent, while retail loans, at N1.72 trillion, accounted for the balance.”