Personal loans taken by Nigerians climbed to an estimated N2.06tn in May 2026, accounting for nearly two-thirds of the country’s outstanding consumer credit as households continued to rely on borrowing amid persistent economic pressures.
The figure represented 64.78 per cent of the N3.18tn consumer credit outstanding during the month, according to data contained in the Central Bank of Nigeria’s May 2026 Economic Report.
Consumer credit itself increased by 1.60 per cent from N3.13tn in April to N3.18tn in May, representing an additional N50bn in outstanding borrowing within a month. The CBN attributed the increase to growth in both personal and retail lending, with personal loans rising by 1.98 per cent and retail loans by 0.90 per cent.
Brandspur Banking News Desk reports that personal lending remained the dominant part of consumer credit, while retail loans accounted for the remaining 35.22 per cent, or approximately N1.12tn.
The rise in borrowing occurred against a backdrop of weak economic activity and subdued consumer demand. The CBN’s composite Purchasing Managers’ Index stood at 49.60 points in May, although this was slightly higher than April’s 49.40 points, remaining below the 50-point mark that separates economic expansion from contraction.
The apex bank linked the contraction to weaker demand, declining new orders and elevated production costs. It also identified weak consumer spending and higher energy costs as pressures affecting businesses in the industrial and services sectors.
Households were also dealing with elevated inflation during the period. Headline inflation rose to 15.93 per cent in May from 15.69 per cent in April, while month-on-month inflation eased to 1.75 per cent from 2.13 per cent.
The lending figures suggest that borrowing is becoming an increasingly important source of financial support for households at a time when income is being stretched by everyday costs. The trend is particularly significant because personal loans, rather than credit tied directly to the purchase of goods and services, made up the largest share of outstanding consumer borrowing.
Separate findings from the 2026 Access to Financial Services in Nigeria Survey point to a similar shift in how Nigerians are using formal credit. 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.
Over the same period, the share of formal credit used for productive purposes fell from 40.2 per cent to 34.3 per cent, making consumption and coping the largest reported purpose for formal borrowing.
Overall use of formal credit also increased, rising from six per cent of adults in 2023 to 10 per cent in 2026. About 11.9 million Nigerians were reported to be borrowing from regulated financial institutions, while 36 per cent of adults had access to some form of credit when informal sources were included.
Credit participation increased across several groups. Among informally employed Nigerians, borrowing rose from five per cent to 15 per cent, while credit use among people aged 18 to 35 increased from four per cent to 10 per cent. Business owners recorded a rise from four per cent to 10 per cent, while borrowing among farmers increased from two per cent to six per cent.
However, the expansion of credit has also brought concerns about repayment pressure. The survey found that 45.8 per cent of formal-credit users experienced some or serious repayment stress, while 83.8 per cent reported ongoing financial stress.
With personal loans now accounting for more than N2tn of outstanding consumer credit, the figures highlight the growing role of borrowing in helping Nigerians manage household finances at a time when economic activity remains subdued and living costs continue to weigh on consumers.
