- Nigerian bank loans to customers would surpass N2 trillion in October 2021, demonstrating the CBN's commitment to increasing lending to the private sector
- These loans are provided at varying lending rates based on the sector and the customer's creditworthiness
- Nigerian banks have developed a variety of products in recent years to make it easier for customers to obtain loans
The Central Bank of Nigeria has revealed that Nigerian banks as at October 2021 lend to customers N2 trillion.
CBN stated this in its monthly economic report which also revealing that the latest level of loan to customers is 37 percent higher than the N1.47 trillion volume of consumer loans as at October 2020.
The loan CBN noted in its report is driven by improved credit appraisal and products diversifications offered by banks and other lenders.
Further detail from the CBN's report showed that the growth in consumer loans was driven by a 52 per cent, YoY increase in personal loans, which rose to N1.57 trillion in October 2021, the Vanguard reports.
PAY ATTENTION: Install our latest app for Android, read best news on Nigeria’s #1 news app
Part of CBN report reads:
“Total consumer credit extended by the Other Depository Corporations (ODCs) grew by 3.4 per cent to N2,009.88 billion at endOctober 2021, from n1,942.87 billion at end- September 2021.
“A disaggregation of consumer loans revealed that personal loans maintained their dominance, accounting for 78.0 per cent, increasing by 2.3 percentage points, above the level in the preceding month, while retail loans accounted for the balance of 22.0 per cent.”
How much interest Nigerian banks charge for loans
Meanwhile Nigerian banks lending rates as published by the Central Bank of Nigeria (CBN) shows two different classes of loan pricing, which are prime lending rates, charged credit worthy customers and maximum lending rates, charged perceived risky customers.
Consequently, banks charge customers lower interest rates of between 4 percent and 27 percent in the prime lending rate category.
The banks has an average interest rate of between 4 percent and 36 percent on loans given to customers in various sectors of the economy, especially agriculture and forestry, manufacturing and education.
Attached is the full lending rates according to sectors.
Nigeria largest banks by customer deposits
Meanwhile, total customer deposits in nine Nigerian banks climbed to N30.81 trillion at the end of the first quarter of this year, up from N29.73 trillion in December 2020.
United Bank for Africa Plc was the top bank in terms of customer deposits as of March 31, 2021, with deposits growing to N5.79 trillion from N5.68 trillion in December.
Others were revealed in the report which used public information from the banks audited accounts published on the Nigerian exchange website.