Personal loans taken by Nigerians rose by an estimated N58.5bn in the second quarter of 2026 to reach N1.99tn at the end of June, as households increasingly relied on debt to manage persistent cost-of-living pressures and high interest rates.
The financial data, released on Monday, October 2, 2026, by the Central Bank of Nigeria (CBN) in its Second Quarter 2026 Economic Report at its headquarters in Abuja, indicates a 3.03 percent increase in personal credit from the N1.93tn recorded at the end of March 2026.
Over the same period, total consumer credit expanded by 3.26 percent, growing from N3.07tn to N3.17tn, reflecting an overall quarterly addition of approximately N100bn. Personal debt continued to account for the largest share of total consumer credit at 62.87 percent.
Meanwhile, retail loans made up the remaining 37.13 percent, rising by N46.5bn over the three months to settle at N1.18tn by the end of June. The surge in borrowing coincided with deteriorating macroeconomic conditions across the country.
Headline inflation climbed from 15.38 percent in March to 15.91 percent in June, driven primarily by elevated energy tariffs and heightened transportation costs. Despite commercial bank interest rates remaining steep, with prime lending rates averaging 19.01 percent and maximum lending rates reaching 34.37 percent, household demand for credit remained resilient.
The central bank highlighted a key shift in consumer borrowing behavior, noting that households are increasingly taking on debt for daily maintenance rather than investment.
Surveys conducted by the apex bank showed that 40.8 percent of formal credit was used primarily for consumption and coping mechanisms during the quarter, up from 31.7 percent in 2023. Conversely, the share of credit allocated toward productive enterprises declined from 40.2 percent to 34.3 percent.
Addressing reporters at the report presentation in Abuja, CBN officials emphasized the risks associated with debt-financed daily living. Bank representatives cautioned that while consumer credit provides immediate relief to stretched households, sustained reliance on high-interest loans for basic consumption poses long-term risks to financial stability and household balance sheets.
