Nigerians’ Personal Loans Hit N2.06tn as Consumer Credit Rises Amid Economic Pressure

Personal loans obtained by Nigerians rose to an estimated N2.06 trillion in May 2026, accounting for 64.78 per cent of total consumer credit outstanding, according to the Central Bank of Nigeria’s latest Economic Report.

The figure was derived from the CBN’s reported consumer credit balance of N3.18 trillion for May. Total consumer credit increased by 1.60 per cent from N3.13 trillion in April, meaning borrowing rose by about N50 billion in one month.

The apex bank said the increase was driven by growth in personal and retail loans, which rose by 1.98 per cent and 0.90 per cent respectively. Personal loans remained the largest component of consumer credit, while retail loans accounted for the remaining 35.22 per cent, or approximately N1.12 trillion.

The rise in borrowing came as economic activity remained weak. The CBN said its composite Purchasing Managers’ Index stood at 49.60 points in May, up slightly from 49.40 points in April but still below the 50-point mark that separates expansion from contraction.

The bank attributed the contraction to subdued demand, declining new orders and elevated production costs. It also identified weak consumer spending and higher energy-related costs as pressures affecting the industry and services sectors.

Inflation remained elevated during the month, with headline inflation rising to 15.93 per cent from 15.69 per cent in April. The CBN attributed the increase to persistent cost pressures and higher energy prices, although month-on-month inflation slowed to 1.75 per cent from 2.13 per cent.

The figures point to increased reliance on credit at a time when households are facing higher living costs and weak spending conditions. A separate 2026 Access to Financial Services in Nigeria Survey found that 40.8 per cent of formal borrowers used loans for coping and consumption, up from 31.7 per cent in 2023.

The survey also found that productive borrowing fell from 40.2 per cent to 34.3 per cent over the same period. Formal credit use increased from six per cent of adults in 2023 to 10 per cent in 2026, with about 11.9 million Nigerians borrowing from regulated providers, while 45.8 per cent of formal-credit users reported some or serious repayment stress.