Consumer credit in Nigeria falls after years of growth
Nigeria’s consumer credit has dropped for the first time in six years, with the Central Bank of Nigeria (CBN) reporting a significant decline. The contraction is attributed to higher interest rates, which have changed borrowing patterns and affected household lending. The latest data shows a shift in the structure of consumer loans, with retail credit now surpassing personal loans. The CBN’s report also highlights changes in banks’ loan maturity profiles and deposit structures.
TLDR
- CBN reported that consumer credit fell by 19.89% to N3.78tn in 2025 from N4.72tn a year earlier, ending a growth streak since December 2019.
- Retail loans rose 63.77% to N1.94tn in 2025, making up 51.16% of total consumer credit, while personal loans dropped to N1.85tn.
- Consumer credit represented 6.60% of total private sector credit in 2025, down from 7.98% the previous year.
- Short-term credit made up 51.60% of total credit, while long-term credit’s share increased to 34.94%.
- Private sector credit expanded to N83.2tn in June 2026 from N76.13tn in June 2025, despite the Monetary Policy Rate remaining at 26.50%.
