Ecobank’s Lending To Customers Drop By N34.9bn As High Lending Rate Stifle Businesses
Ecobank Transnational Incorporated Plc (Ecobank) has reduced its customer lending to N15.3tn despite rising earnings generated across its markets in Nigeria and West Africa.
The development comes amidst mega earnings which rose from N904bn ($673.86m) in 2024 first quarter to N1.05tn ($690.04m) in the first quarter of 2025.
The lender’s revenue also grew 19 per cent from N665.4bn ($495.9m) in Q1 2024 to N788.7bn ($516.3m) in the corresponding period of 2025.
Ecobank’s profit after tax also surged 33 per cent from N140.8bn in 2024 Q1 to N187.1bn in 2025 first quarter.
The banks during the period took more deposits from customers which rose 5 per cent from N31.6tn ($20.4bn) in Q1 last year to N33.2tn ($21.5bn) in the first three months of 2025.
Despite the performance, Ecobank’s loans to customers dropped by 0.2 per cent or N34.9bn in the midst of struggle by businesses and household to secure loans for economic activities.
Checks by THE WHISTLER showed that as of February 21, 2025, Ecobank charged a maximum lending rate of 35 per cent for loans on agricultural activities, manufacturing, real estate activities and education among others.
The lending rate could hit 48 per cent which may have been a disincentive for customers.
A recent report by Intelpoint and Finance in Africa revealed that almost 50 per cent of Nigerians turned to informal credit as interest rate on bank loans became expensive.
President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Oye, in a recent interview on Arise TV argued that 30 to 40 per cent interest rate is detrimental to the economy.
“They also have the issue of the 30 to 40 per cent interest rate, which are commercial bank charges.
“This does not support an industry, no matter whatever you are producing. It won’t work. We have to find a way to bring it down,” he said
Ecobank’s Lending To Customers Drop By N34.9bn As High Lending Rate Stifle Businesses is first published on The Whistler Newspaper
