Nigerians’ Personal Loans Hit ₦2.06tn as Borrowing Rises Amid Cost-of-Living Pressure

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Personal loans obtained by Nigerians reached an estimated ₦2.06 trillion in May 2026, as consumer credit continued to expand amid persistent economic pressures and subdued consumer spending, according to the Central Bank of Nigeria (CBN).

The figure represents the outstanding balance of personal loans during the period, rather than the total amount newly borrowed in May.

The CBN’s May 2026 Economic Report showed that total consumer credit rose by 1.60 per cent to ₦3.18 trillion from ₦3.13 trillion in April, representing an increase of approximately ₦50 billion.

Personal loans accounted for 64.78 per cent of the total consumer credit market, while retail loans made up the remaining 35.22 per cent.

In its breakdown, the apex bank reported that personal loans increased by 1.98 per cent in May, while retail loans grew by 0.90 per cent.

The figures indicate that personal borrowing remains the dominant component of consumer credit in Nigeria, although the data do not establish whether the loans were used for household expenses, education, business activities or other purposes.

The increase in borrowing comes as households and businesses continue to face pressure from living costs, energy expenses and subdued demand.

The CBN reported that Nigeria’s composite Purchasing Managers’ Index rose slightly to 49.60 points in May from 49.40 points in April. However, the index remained below the 50-point threshold that separates expansion from contraction.

According to the bank, weak demand, declining new orders and elevated production costs continued to weigh on business activity in the industry and services sectors.

Inflationary pressures also persisted during the period. The CBN’s report put headline inflation at 15.93 per cent in May, compared with 15.69 per cent in April, while month-on-month inflation slowed to 1.75 per cent from 2.13 per cent.

The figures provide a snapshot of the financial environment in which Nigerians are borrowing, although they do not establish that rising living costs alone caused the increase in personal loans.

Further insight into borrowing patterns emerged from the 2026 Access to Financial Services in Nigeria Survey, which found that 40.8 per cent of formal borrowers used loans primarily for consumption and coping needs, compared with 31.7 per cent in 2023.

The proportion of formal borrowers using credit for productive enterprise purposes fell from 40.2 per cent in 2023 to 34.3 per cent in 2026.

The survey also found that formal credit use increased from six per cent of adults in 2023 to 10 per cent in 2026, with approximately 11.9 million Nigerians borrowing from regulated providers.

However, access to credit has not eliminated financial difficulties for many borrowers. The survey reported that 45.8 per cent of formal-credit users experienced some level of repayment stress, while 83.8 per cent reported ongoing financial stress.

The findings highlight the importance of distinguishing between increased access to borrowing and improvements in household financial wellbeing.

While consumer credit can help individuals manage expenses and finance purchases, repayment obligations may also place additional pressure on household budgets when incomes fail to keep pace with expenses.

The CBN’s latest figures show that outstanding consumer credit continued to grow in May, with personal loans accounting for nearly two-thirds of the total.

The trend offers an important measure of Nigeria’s consumer-credit market as policymakers, financial institutions and households navigate persistent cost pressures and uneven economic conditions.