Personal loans obtained by Nigerians rose to an estimated N2.06tn in May 2026, as households increasingly turned to credit amid rising living costs and weak consumer spending.
According to the latest Economic Report of the Central Bank of Nigeria, total consumer credit increased by 1.60 per cent from N3.13tn in April to N3.18tn in May. Personal loans accounted for 64.78 per cent of the total consumer credit, making them the dominant form of consumer borrowing.
The CBN report showed that personal lending grew by 1.98 per cent during the month, translating to an increase of about N40bn. Retail loans, which accounted for 35.22 per cent of consumer credit, rose by 0.90 per cent.
The rise in borrowing came amid continued pressure on households, with the CBN reporting weak consumer demand, declining new orders and elevated production and energy costs during the period.
Inflation also remained high, increasing to 15.93 per cent in May from 15.69 per cent in April, further putting pressure on household finances.
A 2026 Access to Financial Services in Nigeria survey also found that 40.8 per cent of formal borrowers used loans mainly for consumption and coping needs, up from 31.7 per cent in 2023. Meanwhile, borrowing for productive businesses declined from 40.2 per cent to 34.3 per cent.
The report indicates that while access to credit is expanding, more Nigerians are increasingly relying on loans to meet everyday financial needs rather than to invest in productive activities.
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