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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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Education Minister Urges NASS To Prioritise Takeoff Funding For Already Existing Institutions

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By Gloria Ikibah

The Minister of Education, Dr. Olatunji Alausa, has called on the National Assembly to emphasise on funding for the effective take-off of already established institutions rather than creating new ones.

Dr. Alausa stated this at a public hearing organised by the House of Representatives Committee on Federal Polytechnics and Higher Technical Education, while presenting a memorandum on Thursday in Abuja.

The public hearing featured deliberations on three bills:

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“A Bill for an Act to Establish the Federal College of Entrepreneurship and Skills Acquisition, Hawul Local Government Area, Borno State (HB.1797) – to provide full-time courses and training in technology, applied sciences, arts, social sciences, humanities, and management.

“A Bill to Amend Section 3(2)(b), the Second Schedule, and Section 31 of the Federal Polytechnics Act, Cap F17, Laws of the Federation of Nigeria, 2004 (HB.1413).

“A Bill to Amend the Federal Polytechnics Act, Cap F17, to review the functions of polytechnics (HB.2114)”.

The Minister speaking against the “Bill for an Act to Establish the Federal College of Entrepreneurship and Skills Acquisition, Hawul”, emphasised that the Federal Government maintains a policy of equitable distribution of federal institutions across states.

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According to Alausa, no state should host more than one federal polytechnic, while every state must have at least one. Currently, all states except Sokoto and the Federal Capital Territory are covered under this arrangement.

He asserted that with limited resources, government efforts should be directed at strengthening existing institutions to deliver quality education rather than spreading resources thin by establishing new ones.

Alausa stated, “the Federal Ministry of Education has expanded avenues for establishing private tertiary institutions. States and individuals are encouraged to utilise these channels to support national educational development”.

In view of prevailing funding constraints, he recommended that deliberations on the proposed Federal College of Entrepreneurship and Skills Acquisition in Hawul, Borno State, be suspended.

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He also urged the House to ensure that resources are dedicated to improving the quality of education for Nigerian students by consolidating support for already existing institutions.

With regards to the proposed amendments to the Federal Polytechnics Act, the minister raised no objections except for the provision seeking to include representatives of the National Board for Technical Education (NBTE) and the Manufacturers Association of Nigeria (MAN) on the Governing Council of Polytechnics.

“While both organisations play significant roles, their core functions do not directly align with the responsibilities of a polytechnic’s governing council. NBTE serves as a regulatory body, while MAN advocates for the interests of manufacturers”, he stated.

Earlier, the sponsor of the bill, Rep. Usman Balami (PDP–Borno), defended the proposal, citing insecurity and rising unemployment in Borno as pressing reasons for establishing the institution.

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He described the proposed college as a strategic response to the growing number of unemployed youth and a means to equip them with skills necessary for self-reliance and economic empowerment.

“This institution will provide diverse training programmes tailored for today’s dynamic job market. It will bridge the gap between theory and practice, producing graduates ready to meet workforce demands”, Balami said.

According to the Borno lawmaker, the college will foster innovation, encourage entrepreneurship, and stimulate economic growth in the region by nurturing local talent and promoting a culture of self-employment.

Earlier in his remarks, the Committee Chairman, Rep. Fuad Laguda (APC–Lagos), noted a general consensus on the importance of skills acquisition in tackling unemployment.

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He encouraged stakeholders to make robust contributions, assuring that the committee would carefully consider all submissions in its report.

“With the passage of these bills, Nigerians will have greater access to knowledge and skills in the arts, sciences, technology, humanities, and vocational and technical education,” Laguda said.

He also commended the leadership of the House for their support and the trust reposed in the committee to drive meaningful legislative outcomes.

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Reps Resolve To Investigate Technical Glitch In 2025 UTME

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By Gloria Ikibah

The House of Representatives has resolved to probe the technical fault that resulted in the widespread failure recorded in the 2025 Unified Tertiary Matriculation Examination (UTME).

This resolution was sequel to the adoption of a motion of urgent public importance by Rep. Adewale Adebayo, from Osun state on Thursday at plenary.

Naijablitznews.com recalled that the Joint Admissions and Matriculation Board (JAMB) had released the results of the 2025 UTME on May 9, with a significant number of candidates posting poor scores.

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Reports further revealed that over 78 percent of candidates scored below 200 marks out of the total 400 obtainable.

Following a prompt internal review, JAMB identified a major technical fault behind the results.

The Registrar of JAMB, Prof. Ishaq Oloyede, at a press conference held on Wednesday in Abuja, stated that 379,997 candidates were affected due to discrepancies linked to server issues.

According to Prof. Oloyede, these was due to faulty software updates by one of the technical service providers handling JAMB’s operations in the Lagos and South-East zones.

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He explained that the glitch, which occurred during the first three days of the examination, prevented the proper uploading of candidates’ answers and the error remained undetected before the results were made public.

He announced that the affected candidates will be allowed to retake the examination between May 16 and May 19, 2025.

Presenting the motion on the floor of the House, Rep. Adebayo lamented the hardships faced by many Nigerians, including long travels to exam centres, only to be met with such setbacks.

Contributing to the debate, Rep. Sada Soli from Katsina praised the JAMB Registrar for owning up to the error and offering an apology to the public, and described Oloyede as a man of integrity who has also improved the board’s finances since assuming office.

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However, Speaker Tajudeen Abbas stated that whether the registrar deserves commendation is a matter for the investigative committee to determine.

The House also urged the federal government to establish Computer-Based Test (CBT) centres in all local government areas across the country.

Lawmakers also urged JAMB to release the results of candidates who are below the age of 16.

The House unanimously adopted the motion through a voice vote.

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32.9kg cocaine trafficking: 10 Thai sailors, ship convicted, fined $4.3m(Photos)

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. Conviction will send strong warning to int’l drug cartel, local collaborators, says Marwa, commends NDLEA officers for diligent investigation and prosecution

After over three years of diligent prosecution by the National Drug Law Enforcement Agency (NDLEA), a Federal High Court in Lagos presided over by Justice Daniel Osiagor has convicted 10 Thai sailors and their vessel named MV Chayanee Naree for trafficking 32.9 kilograms of cocaine from Brazil into Nigeria through the Apapa seaport, Lagos.

The convicted sailors who are all nationals of Thailand include: Krilerk Tanakhan; Boonlert Hansoongnern; Jakkarin Booncharoen; Thammarong Put-tlek; Worrapat Paopinta; Marut Kantaprom; Werapat Somboonying; Urkit Amsri; Panudet Jaisuk and Amrat Thawom.

They were first arraigned before the court along with nine Nigerian suspects by NDLEA in February 2022 on offences bordering on conspiracy and unlawful transportation of the illicit drug consignment from Brazil to Nigeria. The vessel, the convicted sailors and the nine Nigerians were arrested on 13th October 2021, at the Apapa port in Lagos. The Nigerian suspects are: Samuel Messiah; Ishaya Maisamari; Ilesanmi Ayo Abbey; Osabeye Stephen; Gbenga Ogunfadeke; Kayode Buletiri; Rilwan Omotosho Liasu; Saidi Sule Alani and Jamiu Adewale Yusuf.

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They were all subsequently charged to court over the illegal acts which NDLEA prosecutors argued contravened sections 11(a), 11 (b), and 14 (b) of the National Drug Law Enforcement Agency Act Cap N30 Laws of the Federation of Nigeria, 2004, and punishable under the same Act.

The convicted sailors had initially made a no-case submission which was dismissed following submissions by the prosecution that a prima facie case had been established against the vessel and its crew members. As a result, the trial judge ordered the convicted Thai sailors and others to open their defence on the charges against them.

Following the court ruling, the convicted sailors opted for a plea bargain agreement with the NDLEA and as a result, Justice Osiagor delivered his ruling at the resumed hearing of the matter on Thursday 15th May 2025.

Among other penalties, the judge convicted the Vessel MV Chayanee Naree for unlawful transportation of 32.9kg of cocaine into Nigeria and
ordered to pay a fine of $4 million or its Naira equivalent.

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The 2nd – 11th defendants were convicted under section 25 of the NDLEA Act for permitting the use of the vessel for the unlawful transportation of 32.9kg of cocaine, while the 2nd, 3rd and 4th defendants were ordered to pay N100,000.00 each as punishment for the offence and in addition restitution in the sum of $50,000 USD each or its equivalent in Naira to the Federal Government of Nigeria. The 5th – 11th defendants are to pay N100,000.00 each and restitution in the sum of $30,000.00, bringing the total amount payable to Four Million Three Hundred and Sixty Thousand US Dollars ($4,360,000.00).
Justice Osiagor thereafter adjourned the trial of the nine Nigerian suspects to June 25.
While the prosecution was led by the Agency’s Director of Prosecution and Legal Services, DCGN Theresa Asuquo, supported by A. Adebayo and Paul Awogbuyi, the defence team was led by the trio of Messrs Babajide Koku, Femi Atoyebi and Tunde Adejuyigbe, all Senior Advocates of Nigeria (SAN).
In his reaction, Chairman/Chief Executive of NDLEA, Brig Gen Mohamed Buba Marwa (Rtd) said the court ruling was a strong message to the international drug cartel and their local collaborators that Nigeria will never be a safe hub for illicit drug trafficking. He commended the NDLEA prosecution team and officers of the Apapa Strategic Command involved in the arrest, seizure and investigation of the shipment for their diligence and resilience in following the case to a logical conclusion. He charged them not to relent in pursuing the other part of the case still pending.

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