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Fintech Loans Drive Consumer Credit to N2.35 Trillion in Q1 2023, Says CBN Report

Consumer credit in Nigeria reached N2.35 trillion in the first quarter of 2023, a 20.95% increase from N1.94 trillion in Q4 2021, according to new data from the Central Bank of Nigeria’s (CBN) Quarterly Economic Report.

The rise was driven by greater usage of fintech lending apps and channels, which expanded access to consumer loans. Personal loans made up N1.75 trillion (74.5%) while retail loans accounted for the remaining N598.28 billion (25.5%).

CBN noted that increased banking liquidity and enhanced fintech credit access from the naira redesign policy stimulated consumer borrowing in Q1 2023.

In Q4 2021, consumer credit grew due to slightly lower maximum lending rates. It totalled N2.07 trillion, up 6.7% from N1.94 trillion in Q3 2021 and 8.5% of overall private sector credit.

Banking system liquidity increased in Q1 2023 as well, resulting from fiscal injections, CBN bill repayments, and other monetary operations.

Fintech innovations continue expanding financial inclusion and consumer credit access in Nigeria. The CBN report highlights the growing role of digital lending in driving personal and retail borrowing.

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