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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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Niger Delta Lawyers task NNPCL Boss, Kyari to make Port Harcourt Refinery operational Before End Of September

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By Kayode Sanni-Arewa

The Coalition of Niger Delta Youth On Energy Reforms and Transparency in the Oil and Gas Sector, has urged the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, to ensure that the Port Harcourt Refinery becomes operational before the end of September as he promised.

At a press conference jointly addressed yesterday by Barr. Dickens A. Opu and Barr. Werigbelegha Zinake, the group lamented that, despite the billions of naira that have been earmarked and disbursed for the functionality of the Port Harcourt refinery, the refining plant remains non-operational.

The group expressed concern about the energy crisis in the country caused by the non-functionality of local refineries, continued dependence on the importation of petroleum products, and the resulting cost implications for the country.

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The Lawyers noted that the failure of the Mele Kyari-led management of the NNPC to revamp local refineries has further worsened the country’s energy crisis and impoverished the people of the oil-producing Niger Delta, who are forced to buy fuel at higher rates than most parts of the country.

The group alleged that the Port Harcourt refinery is being planned to be converted into a blending plant. They claim that substandard petroleum products from Russia will be mixed with chemicals and sold to the people of the Niger Delta.

The Lawyers expressed concern over the potential environmental impact of converting the Port Harcourt refinery into a blending plant. They expressed fear that this move could expose the people of the Niger Delta to harmful chemicals from environmental pollution and degradation caused by the waste products released into the environment.

The statement read: “As we may all be aware, all is not well in the oil and gas sector in Nigeria. The level of corruption is suh that if urgent steps are not taken to address the malaise, Nigeria might go into extinction.

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“We say this with all sense of patriotism given the precarious situation in the economic outlook in the country. It is indeed worrisome that an oil-producing country like ours is experiencing an energy crisis occasioned by the non-functionality of our refineries and the continued dependence on the importation of petroleum products and the attendant cost implication for the country.

“It is indeed a shame that successive administrations in the country have done little or nothing to ensure the functionality of the country’s refineries. For example, despite the billions of naira that have been earmarked and disbursed for the functionality of the Port Harcourt refinery, the refining plant remains comatose.

“This is on the heels that over 2 years ago, Mele Kyari the helmsman of the Nigerian National Petroleum Company Limited indeed promised that the Port Harcourt refinery would commence operations on several occasions. This has not happened and it has further plunged the country into an energy crisis.

“The attendant impact on the socio-economic life in the Niger Dental region can only be imagined. A situation where oil-producing communities are made to purchase fuel at a rate higher than most parts of the country is an anomaly perpetuated by the Mele Kyari-led management of the NNPCL. This is indeed a sorry tale in our quest for sustainable growth and development.

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“Those behind this anomaly are indeed bent on further impoverishing the people of the Niger Delta region. The sin of the Niger Delta people as it stands with the present arrangement is that they are considered less important in the socioeconomic standing of the country even though it is an oil and gas producing region in the country, whereas citizens of the country in other parts of the country will be buying at a cheaper rate from Dangote refinery and paying far less for a better product without so many chemicals in it.

“We wish to state that we have it on good authority that the Port Harcourt refinery is being packaged to become a blending plant where substandard petroleum products from Russia will be mixed with chemicals and sold to the Niger Delta people.

“This is not only acceptable, it also shows a gross disdain for the Niger Delta people. Those in authority do not care about the negative impact of this plan on the livelihood of the Niger Delta people. The Niger Delta people would be subjected to untold hardship by paying more for petroleum products, and also the attendant consequence in other critical sectors of the Niger Delta economy.

“The economic value chain around the operations of the Port Harcourt refinery would be greatly disrupted and bring about a regime of hopelessness and the resort to crime and criminality to make ends meet. Let us not forget that the level of crime and criminality of proportional to the economic standing of the people.

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“The move by the Mele Kyari led NNPCL to convert the Port Harcourt refinery into a blending plant for substandard petroleum products from Russia and other European destinations comes with the attendant health implications for the people of the region.

“The people would indeed be exposed to harmful chemicals from environmental pollution and degradation from the waste products that would be released into the environment as a consequence.

“The rot in the administration of the oil and gas sector in Nigeria is phenomenal. The Mele Kyari-led NNPCL has taken the lack of transparency and accountability to another height. The country has lost huge revenues to the activities of the cartel that is aided and abetted by the Mele Kyari-led NNPCL. We are tempted to say that the Niger Delta people have been slated for extinction.

“The Coalition of Niger Delta Youth On Energy Reforms and Transparency in the oil and Gas Sector frowns at such a disposition which is a dangerous trend that must be halted and addressed with a sense of urgency. The Niger Delta people are an important contributor to the revenue generation of the country and as such it must not be treated with disdain and levity.

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“We are therefore calling on the federal government to look into the plight of the Niger Delta people and do all that is necessary to improve the lot of the people through the entrenchment of transparency and accountability in the administration of the oil and gas sector in the country. The first step in this regard is to ensure the full functionality of the Port Harcourt refinery and other refineries in the country.

“The second step is to institute reforms the administration of the oil and gas sector in the country with emphasis on the oil and gas-producing communities that are home to the major source of revenue for the country. The third step is to institute a probe into the administration of the oil and gas sector by the Mele Kyari-led NNPCL.

“We are calling on the relevant authorities to urgently address the lingering issues in the oil and gas sector in Nigeria. The socioeconomic outlook of the country is worrisome and the country does not have the luxury of time as the situation in the country is getting grimmer by the day.

“The time to act is now and it is our firm belief that the relevant authorities would act in the best interest of the Niger Delta people and the country at large.”

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Photos: Emir of Mutum-Biyu hails Senator Manu for installing solar in his palace

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By Mario Deepromoter

Joyful Emir of Mutum-Biyu, His Royal Highness, Alhaji Justice Sani Sulaiman Duna, has hailed Senator Manu Haruna for installing solar in his palace and environs.

Manu who represents Taraba Central Senatorial District has in the last three weeks installed solar energy in the palaces of three palaces in the last two weeks.

Apparently happy with this positive development, the Emir praised the senator for this impactful initiative, recognizing the benefits of alternative energy in addressing power challenges.

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On Monday, a team of engineers completed the installation of the solar system at the Emir’s Palace, marking a significant step in enhancing the quality of life for the Emir and his community. The Emir thanked Senator Manu for his continuous efforts in bringing development to his constituents.

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US Lauds Edo State for Peaceful Governorship Election, Call for Calm

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By Gloria Ikibah 
 
The United States Mission in Nigeria has praised the people of Edo State for the peaceful conduct of the gubernatorial elections held on September 21, 2024. 
 
In a statement released by U.S. Ambassador to Nigeria, Richard Mills Jr., the Mission highlighted the importance of maintaining peace following the announcement of election results.
 
Ambassador Mills emphasised the appeal by Governor Godwin Obaseki for calm and urged all stakeholders, including the Independent National Electoral Commission (INEC), to respect established electoral processes and legal avenues for challenging results.
 
“Transparency and due process are crucial to maintaining public confidence in any democratic system,” the statement reads in part.
 
The U.S. reiterated its commitment to supporting free, fair, and transparent elections in Nigeria and promised to continue monitoring the situation closely.
 
The statement by the U.S. government underscores the importance of respecting electoral outcomes and ensuring any disputes are handled within the bounds of the law.
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