Nigerians Borrow N50bn in One Month as Personal Loans Lead— CBN
By Daily Hibiscus News
Personal loans obtained by Nigerians rose to an estimated N2.06tn in May 2026, as consumer credit continued to expand amid persistent cost pressures and weak consumer spending, according to the latest Economic Report of the Central Bank of Nigeria.
The figure, calculated from data in the CBN’s May 2026 Economic Report, represents about 64.78 per cent of the N3.18tn total consumer credit outstanding during the month.
The apex bank said consumer credit increased by 1.60 per cent from N3.13tn in April to N3.18tn in May, indicating Nigerians borrowed an additional N50bn within one month.
It said, “Consumer credit outstanding increased by 1.60 per cent to N3.18tn from N3.13tn in the preceding month, driven by growth in personal and retail loans, which rose by 1.98 and 0.90 per cent, respectively.”
It added, “Personal loans remained the dominant component of consumer credit, accounting for 64.78 per cent, while retail loans constituted 35.22 per cent.”
Based on the proportions, personal loans stood at approximately N2.06tn at the end of May, while retail loans amounted to about N1.12tn.
The 1.98 per cent month-on-month increase in personal loans suggests the balance rose by roughly N40bn during the period.
The increase came against a challenging operating environment. The CBN reported that economic activity remained weak in May, with its composite Purchasing Managers’ Index at 49.60 points, slightly higher than 49.40 points in April but still below the 50-point expansion threshold.
According to the bank, the contraction reflected subdued demand, declining new orders and elevated production costs. It also identified weak consumer spending and higher energy-related costs as pressures on the industry and services sectors.
Headline inflation increased to 15.93 per cent in May from 15.69 per cent in April, while month-on-month inflation slowed to 1.75 per cent from 2.13 per cent.
The combination of rising consumer credit and weak consumer spending suggests households were increasingly accessing credit at a time when living costs remained under pressure.
A recent Enhancing Financial Inclusion & Advancement report noted that four in every 10 Nigerians borrowing from formal institutions now take loans mainly for consumption and coping needs.
The 2026 Access to Financial Services in Nigeria Survey revealed that 40.8 per cent of formal borrowers used loans for coping and consumption, up sharply from 31.7 per cent in 2023 — overtaking productive enterprise borrowing, which fell from 40.2 per cent to 34.3 per cent.
Formal credit use increased from six per cent of adults in 2023 to 10 per cent in 2026, with about 11.9 million Nigerians borrowing from regulated providers. When informal sources were included, 36 per cent of adults had access to some form of credit.
However, the report found significant distress among borrowers. About 45.8 per cent of formal-credit users reported some or serious repayment stress, while 83.8 per cent experienced ongoing financial stress
