Outstanding personal loans in Nigeria rose to an estimated N1.99tn at the end of June 2026, reflecting increased household borrowing amid persistent inflationary pressures and high lending costs.
An analysis of the Central Bank of Nigeria’s Second Quarter 2026 Economic Report by The PUNCH showed that personal loans increased by N58.5bn, or 3.03 per cent, from approximately N1.93tn recorded at the end of March.
The report also showed that total consumer credit rose by 3.26 per cent to N3.17tn in the second quarter, compared with N3.07tn in the preceding quarter.
Personal loans accounted for 62.87 per cent of the total consumer credit, while retail loans made up the remaining 37.13 per cent. The figures indicate that personal borrowing continued to represent the larger share of credit extended to consumers during the period.
The increase came against the backdrop of renewed inflationary pressure. According to the CBN report, headline inflation rose to 15.91 per cent in June from 15.38 per cent in March 2026, reflecting higher prices of essential goods and services.
The rise in personal borrowing also comes as households contend with the cost of meeting everyday expenses. A report cited in the original publication indicated that four in every 10 Nigerians accessing loans from formal financial institutions now borrow mainly to meet consumption and other immediate needs.
The development has raised concerns about the growing role of credit in helping households manage financial pressures, rather than supporting activities that could generate income or expand productive capacity.
While the latest figures show an increase in consumer lending, they do not, on their own, establish how much of the additional borrowing went towards essential spending, business activities or other personal needs.
The second-quarter figures provide an indication of the continued demand for consumer credit as households navigate the prevailing economic conditions.
Deborah Adeyefa
