Nigerian bank loans to customers reach 2 trillion naira. Here’s what banks charge to borrow in 2022
- Nigerian bank loans to customers would exceed N2 trillion naira in October 2021, demonstrating the CBN’s commitment to increase lending to the private sector
- These loans are granted at variable rates depending on the sector and the creditworthiness of the customer.
- Nigerian banks have developed a variety of products in recent years to make it easier for customers to get loans
The Central Bank of Nigeria revealed that in October 2021, Nigerian banks were lending their customers N2 trillion.
CBN said so in its monthly economic report which also reveals that the latest level of customer lending is 37% higher than the 1.47 trillion naira volume of consumer loans in October 2020.
The loan noted by the CBN in its report is driven by improved credit ratings and diversification of products offered by banks and other lenders.
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Further details from the CBN report showed consumer loan growth was driven by a 52% year-on-year increase in personal loans, which reached N1.57 trillion in October 2021, the Vanguard reports.
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Part of the CBN report reads:
“Total consumer credit extended by Other Depository Companies (ODCs) increased by 3.4% to N2,009.88 billion at the end of October 2021 from N1,942.87 billion at the end of September. 2021.
“A disaggregation of consumer loans revealed that personal loans maintained their dominance, accounting for 78.0%, increasing by 2.3 percentage points, above the level of the previous month, while personal loans accounted for the balance of 22.0%.
How Much Interest Nigerian Banks Charge For Loans
during this time Nigerian Bank Lending Rates as published by the Central Bank of Nigeria (CBN) shows two different classes of loan pricing, which are Preferential Lending Rates, Creditworthy Customers Charged and Maximum Lending Rates, Charged to Perceived Risky Customers.
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Therefore, banks charge customers lower interest rates between 4% and 27% in the prime rate category.
Banks have an average interest rate of between 4% and 36% on loans made to customers in various sectors of the economy, particularly agriculture and forestry, manufacturing, and education.
Attached are the full loan rates by sector.
Largest Banks in Nigeria by Customer Deposits
Meanwhile, total customer deposits in nine Nigerian banks reached 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 leading bank in terms of customer deposits as of March 31, 2021, with deposits rising to 5.79 trillion naira from 5.68 trillion naira in December.
Others were revealed in the report which used public information from the banks’ audited accounts published on the Nigerian Stock Exchange’s website.