In response to the escalating borrowing trends and the mounting cost of living, the 2024 budget unveiled by the Nigerian government has introduced a N100 billion Consumer Credit Fund.
This strategic move is prompted by the surge in consumer credit, soaring from N2.31 trillion at the close of Q4 2022 to N3.05 trillion by the end of Q3 2023, reflecting a 32% increase or N740 billion within a nine-month period.
The economic challenges posed by persistent inflation and diminishing purchasing power have contributed to Nigerians borrowing approximately N740 billion from banks between January and September 2023.
The World Bank‘s estimation that inflation drove around four million Nigerians into poverty in the first five months of 2023 underscores the urgency of addressing these issues. By allocating funds specifically for consumer credit, the government aims to mitigate the impact of inflation and provide relief to citizens grappling with the rising cost of essentials.
This initiative not only addresses the immediate financial concerns but also seeks to stabilize the economy by supporting individuals through affordable credit options, particularly in the face of the ongoing economic challenges in Nigeria.
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