By Mardiyyah Abubakar
Personal loans obtained by Nigerians rose to about N2.06tn in May 2026, accounting for nearly two-thirds of total consumer credit, according to the Central Bank of Nigeria.
The figure represented 64.78 per cent of the N3.18tn consumer credit outstanding during the month.
Report from the CBN says total consumer credit increased by 1.60 per cent from N3.13tn in April to N3.18tn in May.
Personal loans rose by 1.98 per cent during the month, while retail loans increased by 0.90 per cent.
The apex bank said personal loans remained the largest component of consumer credit, with retail loans accounting for the remaining 35.22 per cent.
Based on the CBN figures, personal loans increased by about N40bn between April and May, while retail loans stood at approximately N1.12tn.
The increase in borrowing came as economic activity remained weak in May.
The CBN’s composite Purchasing Managers’ Index rose slightly from 49.40 points in April to 49.60 points in May, remaining below the 50-point level that separates expansion from contraction.
The apex bank attributed the weak activity to subdued demand, declining new orders and higher production costs. It also cited weak consumer spending and rising energy costs as pressures on the industry and services sectors.
Inflation remained elevated during the period, with headline inflation rising from 15.69 per cent in April to 15.93 per cent in May. Month-on-month inflation, however, slowed to 1.75 per cent from 2.13 per cent.
A recent financial inclusion survey also found that 40.8 per cent of Nigerians who borrowed from formal financial institutions in 2026 used the loans mainly for coping and consumption.
That was up from 31.7 per cent in 2023.
The survey found that borrowing for productive activities fell from 40.2 per cent to 34.3 per cent over the same period, while borrowing for household assets declined from 25.2 per cent to 23.4 per cent.
It also reveals that 45.8 per cent of formal-credit users reported some or serious repayment stress, while 83.8 per cent experienced ongoing financial stress.
Edited by Julian Osamoto
