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Personal Loans Rise to N1.99tn as Inflation Pressures Households
Nigerians’ outstanding personal loans rose by N58.5bn to N1.99tn at the end of June 2026, driven by persistent inflationary pressures.
Data from the Central Bank of Nigeria’s Second Quarter 2026 Economic Report showed personal loans increased by 3.03 per cent from about N1.93tn at the end of March.
Total consumer credit rose by 3.26 per cent to N3.17tn from N3.07tn in the previous quarter, an increase of about N100bn. Personal loans accounted for 62.87 per cent of the total, while retail loans made up 37.13 per cent.
Retail loans also grew by 4.10 per cent to N1.18tn from N1.13tn in March.
The CBN said headline inflation rose to 15.91 per cent in June from 15.38 per cent in March, largely due to higher energy and commodity prices linked to geopolitical tensions in the Middle East, which raised production and transport costs.
Borrowing remained expensive, with the average prime lending rate at 19.01 per cent and the maximum lending rate at 34.37 per cent.
The rise comes as a survey on financial inclusion showed that 40.8 per cent of formal borrowers now take loans mainly for consumption and coping needs, up from 31.7 per cent in 2023, overtaking borrowing for productive enterprise, which fell to 34.3 per cent.
