The International Monetary Fund (IMF) has said rising private debt would slow economic recovery in Nigeria and across the world, stating vulnerable households and firms might struggle with repayment, IgbereTV reports
IMF disclosed that this would have an impact on economic production, recalling that various governments had offered credit facilities to households and companies, including small and medium enterprises to support the economy.
In Nigeria, the Central Bank had cut interest on loan from 9% to 5% in 2020 to increase loan demand, and this rate has remained till date. As of September 2021, private sector debt hit an all-time high of N33.8 trillion.
Although, Non-Performing Loans ratio (NPLs) has dropped to 4.84% from 4.9% as of February 2022, but this slight decline in NPLs might not be enough to prevent the debt from slowing down the economy recovery
