Outstanding personal loans owed by Nigerians rose to a record ₦1.99 trillion at the end of June 2026, reflecting a fresh increase in household borrowing amid persistent inflation and high lending costs.
The figure represents an increase of approximately ₦58.5 billion, or 3.03 per cent, from the ₦1.93 trillion recorded at the end of March, according to the Central Bank of Nigeria’s second-quarter economic report.
The rise in personal borrowing coincided with an increase in total consumer credit, which climbed by 3.26 per cent from ₦3.07 trillion in March to ₦3.17 trillion in June, adding roughly ₦100 billion to outstanding consumer debt within three months.
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 increased by approximately ₦46.5 billion to ₦1.18 trillion, representing quarterly growth of 4.10 per cent.
Inflation and High Interest Rates Add Pressure
The increase in borrowing came as Nigerians continued to contend with rising household expenses and pressure on their purchasing power.
The CBN reported that headline inflation rose to 15.91 per cent in June 2026, compared with 15.38 per cent in March. Higher energy and commodity prices, partly linked to geopolitical tensions in the Middle East, contributed to increased production and transportation costs.
Meanwhile, borrowing remained expensive across the banking sector. The average prime lending rate declined slightly from 19.37 per cent to 19.01 per cent during the quarter, while the maximum lending rate edged up from 34.34 per cent to 34.37 per cent.
Although these figures represent general banking-sector lending rates rather than the specific charges on every personal loan, they highlight the high cost of accessing credit.
More Nigerians Borrow to Meet Daily Needs
The growing personal loan balance also comes amid a shift in how Nigerians use credit.
The 2026 Access to Financial Services in Nigeria Survey found that 40.8 per cent of formal borrowers used loans mainly to cover consumption and immediate financial needs, compared with 31.7 per cent in 2023.
Over the same period, the proportion of borrowers using credit for productive business activities fell from 40.2 per cent to 34.3 per cent.
Formal credit usage increased from six per cent of adults in 2023 to 10 per cent in 2026, representing approximately 11.9 million Nigerians borrowing from regulated financial institutions.
When informal borrowing sources were included, 36 per cent of adults had access to some form of credit.
The figures highlight the growing importance of credit in household finances, while raising questions about whether loans are increasingly helping Nigerians invest in income-generating activities or simply meet immediate expenses.
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