Outstanding personal loans in Nigeria rose by ₦58.5bn in the second quarter of 2026, reaching approximately ₦1.99tn at the end of June amid persistent inflationary pressures and high borrowing costs.
An analysis of the Central Bank of Nigeria’s second-quarter economic report showed that personal loans increased by 3.03 per cent from about ₦1.93tn recorded at the end of March. Total consumer credit also rose by 3.26 per cent, from ₦3.07tn to ₦3.17tn during the period.
According to the CBN, personal loans accounted for 62.87 per cent of outstanding consumer credit, while retail loans made up the remaining 37.13 per cent. Retail loans grew by 4.10 per cent to approximately ₦1.18tn in June, compared with ₦1.13tn in March.
The increase in borrowing came as headline inflation rose to 15.91 per cent in June from 15.38 per cent in March. The CBN attributed the rise largely to higher energy and commodity prices linked to geopolitical tensions in the Middle East, which increased production and transportation costs.
Borrowing also remained expensive despite a slight decline in the average prime lending rate to 19.01 per cent from 19.37 per cent in the previous quarter. The maximum lending rate edged up to 34.37 per cent from 34.34 per cent, reflecting continued pressure on some borrowers, although these figures represent broader banking sector rates rather than specific personal loan charges.
The 2026 Access to Financial Services in Nigeria Survey found that 40.8 per cent of Nigerians borrowing from formal financial institutions used loans mainly for consumption and coping needs, up from 31.7 per cent in 2023. Meanwhile, borrowing for productive activities declined from 40.2 per cent to 34.3 per cent, raising concerns about the use of credit to meet immediate needs rather than support income-generating activities.
The survey also showed that formal credit use increased from six per cent of adults in 2023 to 10 per cent in 2026, representing about 11.9 million Nigerians borrowing from regulated providers. When informal sources were included, 36 per cent of adults had access to credit, while borrowing increased among young adults, business owners, farmers and informally employed Nigerians.
