Hardship Deepens as Nigerians Borrow Nearly ₦2tn in Personal Loans to Survive

• Personal loans obtained by Nigerians surged to ₦1.96 trillion in January 2026, accounting for more than half of the country’s total consumer credit, amid rising inflation, economic pressure and growing demand for household financing.

Personal loans granted by Nigerian banks rose to ₦1.96 trillion in January 2026, highlighting the increasing reliance of households on borrowed funds as economic hardship continues to weigh on consumers.

According to the latest Economic Report released by the Central Bank of Nigeria (CBN), personal loans accounted for more than half of the country’s total consumer credit during the month under review.

The report showed that total consumer credit outstanding increased by 0.79 per cent to ₦3.81 trillion in January, up from ₦3.78 trillion recorded in December 2025.

The growth was driven entirely by personal lending, which climbed by 5.95 per cent from ₦1.85 trillion to ₦1.96 trillion.

The apex bank stated:

“Consumer credit outstanding increased by 0.79 per cent to ₦3.81tn, from ₦3.78tn in the preceding month. The increase in consumer credit was due solely to the rise in personal loans by 5.95 per cent to ₦1.96tn from ₦1.85tn, which constituted 51.44 per cent of total consumer credit.”

Meanwhile, retail loans declined by 4.15 per cent to ₦1.85 trillion, representing the remaining 48.56 per cent of total consumer credit.

The report also indicated that lending across the broader economy recorded only marginal growth, rising by 0.17 per cent to ₦57.41 trillion.

According to the CBN, the increase was largely driven by higher credit to the services and agriculture sectors.

Credit to agriculture rose to ₦3.81 trillion, while the services sector received ₦32.86 trillion. The industrial sector accounted for ₦21.21 trillion in lending.

Within the services sector, finance, insurance and capital market activities attracted the largest share of credit at ₦9.16 trillion, while trade and commerce received ₦5.54 trillion.

Despite the growth in lending, inflationary pressures remain a major concern.

The Monetary Policy Committee recently retained the benchmark interest rate at 26.5 per cent, citing inflation risks and the need to maintain exchange rate stability.

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Nigeria’s headline inflation increased to 15.69 per cent in April 2026 from 15.38 per cent in March, while food inflation climbed to 16.06 per cent.

The President of the Association of Small Business Owners of Nigeria, Dr. Femi Egbesola, criticised the decision to retain interest rates, arguing that lower rates would make borrowing more affordable for businesses and households.

He warned that high borrowing costs could further worsen the challenges facing small businesses already struggling with inflation, rising energy costs and declining purchasing power.

The latest figures come as many Nigerians continue to grapple with increasing living expenses, forcing more households to rely on personal loans to meet daily financial obligations.