As Interest Rates Rise, Nigerians are Borrowing Less, According to the CBN.

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According to Central Bank of Nigeria (CBN) records, the amount of outstanding consumer credit in Nigeria decreased by 6.78% from N2,073.76 billion in December 2021 to N1,933.18 billion at the end of June 2022.

Accordingly, as of June 2022, Nigerians are borrowing less than they were in December 2021, when borrowing was at a high level.

The CBN attributed the decline to the increase in interest rates, which central banks around the world have been doing to combat inflation.

Credit to real sectors: By the end of June 2022, the total amount of credit extended to the economy’s various sectors had increased by 10.12% to N26,846.40 billion, primarily as a result of a 12.41% growth in credit to the N14,624.15 billion services sector.

According to CBN, lending to agriculture and industry climbed by 11.84 and 6.87 percent, respectively.

Nairametrics

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