Nigerians borrowing to survive as cost of living continues to rise

Nigerians are approaching their banks for loans to cover expenses amid the rising cost of living in the country.

Ripples Nigeria had earlier showed how much inflation has eaten into the salaries of Nigerian workers and increased the pressure on households.

The half-year financial statements released by Access, Zenith, United Bank for Africa, Guaranty Trust Holding Company (GTCO), FCMB Group, Stanbic IBTC Holdings Plc, and FBN Holdings Plc revealed that customers are requesting more loans and advances for various reasons.

According to the analysis, Stanbic IBTC Holdings Plc and Access Bank Plc reported the biggest increase in customer loans and advances in the first half of this year.

Stanbic IBTC increased its loans and advances to customers by 39 percent from N0.76 trillion in the first half of 2021 to N1.06 trillion in the same period this year.

Access Bank’s loan book grew by 29 percent from N3.58 trillion in H1 2021 to N4.62 trillion in H1 this year.

Zenith Bank increased its loans to customers by 22 percent to N3.66 trillion from N3 trillion.

FCMB’s loan to customers also grew by 22 percent to N1.12 trillion in H1 2022 from N0.92 trillion in the same period of 2021.

UBA’s loans to its customers stood at N2.75 trillion at the end of 2022, up by 4.5 percent from N2.63 trillion posted in the same period of 2021.

GTCO, the holding company of Guaranty Trust Bank Limited, said its loans and advances to customers grew by 12 percent to N1.83 trillion in H1 2022 from N1.63 trillion in the same period of 2021.

However, only FBN Holdings, the holding company of First Bank of Nigeria Limited, reduced its loans to customers during the period.

The lender’s loans and advances to customers dropped from N2.53 trillion in H1 2021 to N1.83 trillion this year.

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