Outstanding personal loans owed by Nigerians rose by ₦58.5 billion to ₦1.99 trillion at the end of June 2026, as households continued to face inflationary pressures.

Data from the Central Bank of Nigeria’s (CBN) Second Quarter 2026 Economic Report showed that personal loans increased by 3.03 per cent from approximately ₦1.93 trillion recorded at the end of March.

Total consumer credit also rose by 3.26 per cent to ₦3.17 trillion, up from ₦3.07 trillion in the previous quarter, representing an increase of about ₦100 billion.

Personal loans accounted for 62.87 per cent of total consumer credit, while retail loans made up the remaining 37.13 per cent.

Retail Loans Also Record Growth

The report showed that retail loans increased by 4.10 per cent to ₦1.18 trillion at the end of June, compared with ₦1.13 trillion in March.

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The increase in borrowing came amid rising living costs, with headline inflation climbing to 15.91 per cent in June from 15.38 per cent in March.

The CBN attributed the inflationary pressure largely to higher energy and commodity prices linked to geopolitical tensions in the Middle East, which increased production and transportation costs.

High Interest Rates Add to Borrowing Costs

Despite the growing demand for credit, borrowing remained expensive during the period.

The average prime lending rate stood at 19.01 per cent, while the maximum lending rate reached 34.37 per cent.

Meanwhile, a financial inclusion survey indicated a growing reliance on loans for household consumption and daily needs.

It showed that 40.8 per cent of formal borrowers took loans mainly for consumption and coping needs, compared with 31.7 per cent in 2023.

Borrowing for productive enterprise, however, declined to 34.3 per cent, indicating a shift in the major reasons Nigerians seek formal credit.