Nigeria’s Personal Loans Rise to N2.06tn as Consumer Borrowing Increases

Personal loans in Nigeria have risen to an estimated N2.06 trillion, as consumer borrowing continues to increase amid financial pressure on households.

The figure is contained in the Central Bank of Nigeria’s May 2026 Economic Report, which showed that total consumer credit increased by 1.6 per cent between April and May.

According to the CBN, consumer credit rose from N3.13 trillion in April to N3.18 trillion in May, representing an increase of about N50 billion in one month.

Personal loans accounted for 64.78 per cent of total consumer credit, making them the largest component. Based on the CBN figures, personal loans stood at approximately N2.06 trillion, while retail loans accounted for about N1.12 trillion.

The increase in consumer borrowing occurred against a backdrop of weak economic activity and continued financial pressure on households and businesses.

The CBN reported that economic activity remained weak in May, with its Purchasing Managers’ Index standing at 49.60 points. A reading below 50 points indicates contraction.

The apex bank also reported that headline inflation rose from 15.69 per cent in April to 15.93 per cent in May.

Meanwhile, findings from the 2026 Access to Financial Services in Nigeria survey showed a shift in the reasons people take loans.

The proportion of formal borrowers taking loans for coping and consumption increased from 31.7 per cent in 2023 to 40.8 per cent in 2026, while borrowing for productive enterprise purposes declined from 40.2 per cent to 34.3 per cent.

The figures do not establish the reasons behind every individual’s borrowing. However, they show that personal loans remain the dominant component of consumer credit as households continue to navigate financial pressures.