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Nigerians Borrow N3.9tn To Survive Worsening Economy,Rising Cost of Living-Report

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By Kayode Sanni-Arewa

Nigerians affected by the rising cost of living obtained credit facilities worth N3.82tn from banks as of January 2024, the Central Bank of Nigeria has stated.

An analysis of the latest monthly economic report posted on its website revealed that the total consumer credit rose by 11.9 per cent to N3.82tn in January 2024, driven, mainly, by the rise in personal loans on the back of heightened inflation.

On a year-on-year basis, the figure represented an increase of N1.41tn from N2.41tn recorded in January 2023.

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It added that personal loans increased by 14.3 per cent to N3.028tn from N2.648tn in December 2023, while retail loans rose by 3.6 per cent to N794.79bn.

Personal loans also accounted for 79.2 per cent of consumer credit, while retail loans accounted for 20.8 per cent highlighting Nigerians’ struggle with unwavering inflation and waning purchasing power.

The report read, “Total consumer credit outstanding increased by 11.9 per cent to N3.82tn in January 2024, driven, mainly, by the rise in personal loans on the back of heightened inflation. A disaggregation of consumer credit revealed that personal loans increased by 14.3 per cent to N3.028tn from N2.648tn in December 2023, while retail loans rose by 3.6 per cent to N794.79bn. Personal loans accounted for 79.2 per cent of consumer credit, while retail loans accounted for 20.8 per cent. Consumer credit, as a share of total credit from ODCs, however, declined to 6.6 per cent, from 7.7 per cent in the preceding month.”

The apex bank further stated that total credit extended to key sectors of the economy increased by N13.22bn or 29.7 per cent to N57.76bn, compared with N44.54bn in the preceding month.

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“Total credit extended to key sectors of the economy by other depository corporations increased by 29.7 per cent to N57.76bn, compared with N44.536bn in the preceding month. The growth was driven by the sustained increase in credit to services (25.6 per cent), industry (37.5 per cent), and agricultural sector (7.1 per cent). A decomposition of sectoral credit indicated that the services sector remained dominant, accounting for 52.1 per cent. Industry constituted 44.7 per cent, while agriculture accounted for the balance of 3.2 per cent,” the report added.

The headline inflation rate reached a 28-year high of 33.95 per cent in May forcing the apex bank to hike the interest rate consecutively to 26.25 per cent.

Nigerians have found themselves grappling with deteriorating living standards and increased economic hardships after the implementation of sweeping economic reforms by the current administration.

As a result, the country is facing its worst economic crisis in decades, with skyrocketing inflation, a national currency in free fall and millions of people struggling to buy food.

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This situation has forced many citizens to seek loans as an alternative to meet their basic needs.

A study by SBM Intelligence found that 27 per cent of Nigerians across different income categories now resort to loan apps to keep up with their living expenses in the wake of record inflation.

The surge in demand for these loan apps is indicative of the severe impact of the unyielding inflationary pressures on the daily lives of Nigerians, especially those already grappling with limited financial resources.

While citizens in the informal sector patronise loan apps, civil servants turn to their employers for succour.

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Meanwhile, public servants obtained credit facilities worth N6.1bn from their respective state governments within 15 months amid worsening economic hardship.

The borrowing obtained as loans and salary advances were granted to the civil servants between January 2023 and March 2024, according to an analysis of their budget implementation report obtained from the Open States website.

Further analysis showed that the workers obtained loans from 11 states to buy motor vehicles and build homes and furniture.

Our correspondent also observed that most states didn’t disburse the loans to their workers despite the budgetary allocation of their annual budget breakdown showed that civil servants in Delta State got the highest loan of N2.75bn, followed by Kano State with N1.1bn and Kebbi State with N680m.

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Fourth on the list is Yobe State with salary advances worth N586.88m.

Other states including Lagos State lent N294.44m, Jigawa N244.58m, Enugu (N401.94m), Anambra (N427,200), Borno (N428,000), Kwara (N44.13m), Ogun (N8.16m).

Founders of loan companies have stated that harsh economic realities have forced more individuals to rely on more loans because of the constant rise in the cost of goods and services, especially since the removal of fuel

In a recent intetview, the Chief Executive Officer/founder of Trade Lenda, Adeshina Adewumi, said his firm’s absolute numbers had grown by 100 per cent in recent times.

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He said, “The numbers have gone quite high. In terms of users, we have grown slightly over 100 per cent within this subsidy removal period, June and July.

“The increase in loans is generally across the board even though we do not focus on individuals. We focus just on businesses that need loans to grow their business, and we have seen the number grow significantly high. We have grown by over 100 per cent in the last two months. People are requesting N50,000 (the least we have seen) and as high as N5m.”

The founder of TellerOne, Olajuwon Marc, affirmed that the number of approved loans by his company had grown

He stated that in recent times, the economy has stifled businesses and the only way they could grow was to borrow more.

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He said, “Things are now very expensive and the initial capital businesses have is no longer enough to buy things from the market, and they now rely on loans to survive this. We give out these loans to SMEs.”

He added, “The number of approved loans has grown to up to 70 per cent. The demand has surged to over 100 per cent. People always need loans, and the harsh economic realities now are driving this.”

While loan apps are offering a reprieve to small businesses, there are still plenty of issues that only serious government action can solve.

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Varsity don slams Alaafin over three-hour delay, lack of apology at event

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By Kayode Sanni-Arewa

The Alaafin of Oyo, Oba Akeem Abimbola Owoade, has come under heavy hammer from a Professor of English at the University of Ibadan, Prof. Ademola Omobewaji Dasylva, over his alleged three-hour delay to a programme and failure to apologise after arriving.

Dasylva, who teaches drama, poetry, African Literatures and Oral Literature/Folklore Studies at the University of Ibadan, described the monarch’s conduct as disrespectful and inconsistent with the values of the revered Yoruba royal institution.

The don made the remarks in an article, titled: “Of Mythography and Mythognosis: A Complementary Perspective on Yoruba Mythology and The Relevance, Today,” published on the Toyin Falola Network.

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According to Dasylva, the article partly celebrated the inauguration of the Alaafin Institute of Yoruba Studies at the Emmanuel Alayande University of Education, Oyo, held on July 14, 2026.

Before I go on, however, let me mention, in passing, but for the maturity and discipline demonstrated by both the organisers, and the very cultured invited guests, an extreme patience taken for granted by some leaders and cultural icons, the well organised inauguration event of a foremost Yoruba Cultural Institute could have been thoroughly messed up, courtesy of the usual ‘Nigerian thing’, widely referred to as ‘African time,’” he wrote.

Dasylva said the event was scheduled to begin at 9am, with dignitaries, including retired Bishop (Prince) Ladigbolu, already seated, while the programme indicated that the Alaafin was expected at 9:55am.

The university lecturer alleged that the monarch did not arrive until 12:20pm, forcing guests to wait for more than three hours.

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“However, the event had to be kept on hold, courtesy of Alaafin Owoade, who arrived at the venue at 12:20pm.

“In other words, people, including yours truly, were kept waiting for over three hours before the event finally took off.

“Perhaps it wouldn’t have mattered much had other important and peripheral activities including cultural dances, been allowed to fill up the gap pending the Alaafin’s arrival, but no.

“Everyone was kept waiting and wondering what could have taken the monarch that long to attend to a great honour bestowed on the revered Throne of the Alaafin and Ancestry.”

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The professor said what disappointed him most was the absence of an apology from either the monarch or his representatives.

“Unfortunately, not a word of apology for the lateness of the Imperial Majesty and his entourage, either by his spokesperson or directly by His Imperial Majesty!

“But as a teacher of culture, a proud Yoruba, and an advocate of our rich African cultural heritage, I found that rather strange and incomprehensible.”

Dasylva argued that while such behaviour had become common among some politicians, it should not be associated with a foremost Yoruba monarch.

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“I do know that many uncultured Nigerian politicians who have refused to outgrow their adult delinquency regularly do that a lot and take the people they are meant to serve for granted.

“However, may I say in all humility, it is least expected of a foremost Yoruba monarch, a significant institution that embodies Yoruba cultural values and the requisite discipline.

“To whom much is given much is required.

“Again, in all humility, I stand to be corrected.”

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As at the time of filing this report, Oba Owoade, who is currently on vacation to Manitoba, Canada, where he resided before becoming Alaafin, could not be reached for comments on the professor’s condemnation.

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Video: Six months from now Abuja residents can now link Lugbe from Nile varsity

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In the next 6 months, Abuja residents can now link Lugbe from Nile University.

Construction of Collector Road CO1 from the Nile University area to Ring Road III (Lugbe) is now going on.

FCT Minister, Nyesom Wike, was at the site to inspect the project, which was flagged off last month.

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Kaduna Attack: How I pleaded with my slain dad to flee but he refused – Survivor narrates ordeal

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Survivors of the fatal terrorist attack on Naridon village in Kauru Local Government Area of Kaduna State, have recounted the horror they witnessed during the assault that claimed 30 lives, including five siblings from the same family, Daily Trust reports.

The armed attackers stormed the village in the early hours of Monday, shooting sporadically at residents.

They k!lled dozens of people, set houses ablaze, looted food items and forced villagers to flee into nearby bushes for safety.

Although security has since been reinforced and relative calm restored, many residents said they were still afraid to return home for fear that the attackers might strike again.

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President Bola Ahmed Tinubu directed the security and intelligence agencies to track down the perpetrators.Politics

Speaking on Tuesday during a visit by security agencies, the survivors described the attack as cruel and devastating.

One of them linked the assault to the recent k!lling of a herder whose body was allegedly dumped in the community.

One of the survivors, Auta Danladi, who lost his father and an uncle, said he survived only by the grace of God.

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He said his parents refused to flee when the gunmen invaded the community and his father was later k!lled.

“When I heard that the attackers were coming, I rushed out of the house. There was confusion everywhere and everyone started running for safety,” he said.

“I tried all I could to persuade my father and my mother to leave, but they refused. In the end, my father was k!lled. I quickly ran into the bush and hid.

“I saw the attackers pass close to where I was lying, but God did not allow them to see me. They burned our house and my in-law’s house as well.

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“I have left everything in the hands of God. I don’t have the strength to fight, but God witnessed what they did.

“As the first son of the family, I was shattered when I learned that my father and my uncle had been k!lled. My father was the one I depended on for survival, but now he is gone.”

Another survivor, Alheri Joseph, said the sound of gunfire shattered the peace of the night and forced families to flee for their lives.

“We were sitting together when we suddenly heard gunshots from different directions. I escaped with my children to another village, while those who remained behind were k!lled.

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“Why did they attack us? What is our offence? We are living in fear because we don’t know whether they will come back again. We are worried that this may not be the end.

“We are deeply pained by the death of our relatives. They were our loved ones, our friends, our parents and members of our families.

“We are calling on the government to do justice for us. Whenever such incidents happen, government officials come, make promises and later forget them. This is not just about bringing relief materials. Lives have been lost. What we need is protection,” he said.

Another resident, Blessing Luka, who lost her co-wife and other relatives in the attack, said the community had no idea why it was targeted.

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“We were sleeping peacefully without knowing what was happening. I remember that about two weeks ago, a herder was k!lled somewhere and his body was abandoned in our village. His relatives later came to evacuate the body.

“We don’t know who k!lled him or what happened. We had no involvement in it, but suddenly they came and attacked us, k!lling our family members. This is not the first time such k!llings have happened here, yet nothing has been done to stop them,” she said.

The survivors appealed to security agencies and other relevant stakeholders to take decisive action to end the recurring attacks and ensure that those responsible are brought to justice.

They said the community could no longer continue to live under the constant fear of losing more innocent lives.

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“Why did they attack us? What is our offence? We are living in fear because we don’t know whether they will come back again. We are worried that this may not be the end.

“We are deeply pained by the death of our relatives. They were our loved ones, our friends, our parents and members of our families.

“We are calling on the government to do justice for us. Whenever such incidents happen, government officials come, make promises and later forget them. This is not just about bringing relief materials. Lives have been lost. What we need is protection,” he said.

Another resident, Blessing Luka, who lost her co-wife and other relatives in the attack, said the community had no idea why it was targeted.

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“We were sleeping peacefully without knowing what was happening. I remember that about two weeks ago, a herder was k!lled somewhere and his body was abandoned in our village. His relatives later came to evacuate the body.

“We don’t know who k!lled him or what happened. We had no involvement in it, but suddenly they came and attacked us, k!lling our family members. This is not the first time such k!llings have happened here, yet nothing has been done to stop them,” she said.

The survivors appealed to security agencies and other relevant stakeholders to take decisive action to end the recurring attacks and ensure that those responsible are brought to justice.

They said the community could no longer continue to live under the constant fear of losing more innocent lives.

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