Outstanding personal loans in Nigeria climbed to approximately ₦1.99 trillion at the end of June 2026, following an increase of about ₦58.5 billion in the second quarter, amid persistent inflationary pressures and high borrowing costs.
An analysis of the Central Bank of Nigeria’s second-quarter 2026 Economic Report showed that personal loans grew by 3.03 per cent from about ₦1.93 trillion recorded at the end of March.
Total consumer credit also increased by 3.26 per cent to ₦3.17 trillion, compared with ₦3.07 trillion in the preceding quarter, representing an additional ₦100 billion in borrowing within three months.
The CBN attributed the growth to increases in both personal and retail loans, which rose by 3.03 per cent and 4.10 per cent respectively.
Personal loans accounted for 62.87 per cent of total consumer credit, while retail loans represented the remaining 37.13 per cent.
Retail loans increased by approximately ₦46.5 billion to ₦1.18 trillion at the end of June, from an estimated ₦1.13 trillion in March. Although retail borrowing recorded a faster growth rate, personal loans remained the larger component of consumer credit.
The increase in household borrowing came as inflationary pressures continued to affect purchasing power. According to the CBN report, headline inflation rose from 15.38 per cent in March to 15.91 per cent in June 2026.
The report linked the rise largely to higher energy and commodity prices associated with geopolitical tensions in the Middle East, which increased production and transportation costs.
Lending conditions also remained relatively expensive. The average prime lending rate declined slightly from 19.37 per cent in the first quarter to 19.01 per cent in the second quarter, while the maximum lending rate edged up from 34.34 per cent to 34.37 per cent.
Although these figures represent broader banking sector lending conditions rather than the specific rates charged on personal loans, they indicate the high cost of borrowing for some customers.
Further evidence of changing borrowing patterns emerged from the 2026 Access to Financial Services in Nigeria Survey, which found that 40.8 per cent of Nigerians borrowing from formal financial institutions used the funds mainly for consumption and coping needs.
This represented an increase from 31.7 per cent in 2023, while borrowing for productive enterprise activities declined from 40.2 per cent to 34.3 per cent over the same period.
The survey also showed that borrowing for household assets fell from 25.2 per cent to 23.4 per cent.
The report warned that the growing use of credit for everyday survival needs raised concerns about whether borrowing was building productive capacity or increasing financial distress.
Formal credit usage increased from six per cent of Nigerian adults in 2023 to 10 per cent in 2026, with approximately 11.9 million people borrowing from regulated financial institutions. When informal lending sources were included, 36 per cent of adults had access to some form of credit.
Credit use among informally employed Nigerians tripled from five per cent to 15 per cent, while borrowing among people aged 18 to 35 increased from four per cent to 10 per cent.
The survey also recorded an increase in credit use among business owners, from four per cent to 10 per cent, and farmers, from two per cent to six per cent.
The figures highlight the growing role of borrowing in household finances, as more Nigerians turn to credit to meet daily expenses and other financial needs.
